Question

A debtor went through Chapter 7 bankruptcy and received a discharge. Explain whether the following remaining debts were discharged:

a. A judgment for $3,000 for breach of contract.
b. $2,000 of unpaid child support
c. A loan of $5,000 where the debtor had mislead the creditor as to the value of the collateral.
d. Student loan debt of $22,000.
e. A judgment against the debtor for $4,000 for negligently backing into another motorist's car.

Answer 1

In Chapter 7 bankruptcy, some debts may be discharged while others may not. Debts such as breach of contract and negligently causing damage may be discharged, whereas unpaid child support and student loan debt are typically not discharged. Consult a bankruptcy attorney to understand the dischargeability of specific debts.

Step-by-step explanation:

In Chapter 7 bankruptcy, some debts may be discharged, while others may not. Let's analyze each remaining debt:

a. A judgment for breach of contract is likely to be discharged, as it is a general unsecured debt.

b. Unpaid child support cannot be discharged in Chapter 7 bankruptcy, as it is considered a priority debt.

c. The loan where the debtor misled the creditor as to the value of the collateral may not be discharged if the creditor can prove fraud or that the debtor acted with intent to deceive.

d. Student loan debt is generally not dischargeable in bankruptcy unless the debtor can demonstrate undue hardship.

e. The judgment for negligently backing into another motorist's car may be discharged, as it is also a general unsecured debt.

It's important to consult with a bankruptcy attorney to fully understand the dischargeability of specific debts in your situation.