A discharge of consumer debts is a court order that removes certain debts, and eliminates the debtor’s responsibility to pay certain creditors.
In the case of consumer debts of and individual or married couple, Chapter 7 bankruptcy may be used to discharge certain unsecured debts including:
- credit cards,
- medical debts, and in some cases
- federal and state income tax liabilities that have not been paid, along with their associated penalties. [1]Tax liabilities must be at least three years old, more recent tax liabilities are not eligible for discharge.
References
| ↑1 | Tax liabilities must be at least three years old, more recent tax liabilities are not eligible for discharge |
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