Question
4. Which type of debt is not forgiven under Chapter 7 bankruptcy? 1. Credit card debts cannot be forgiven in Chapter 7 bankruptcy. 2. Medical bills cannot be forgiven in Chapter 7 bankruptcy. 3. Student loans cannot be forgiven in Chapter 7 bankruptcy. 4. Mortgage debts cannot be forgiven in Chapter 7 bankruptcy.
Solution
4.3
(293 Votes)
Wilbur
Master ยท Tutor for 5 years
Answer
3. Student loans cannot be forgiven in Chapter 7 bankruptcy.While many types of unsecured debt are dischargeable in Chapter 7 bankruptcy, student loans (both federal and private) are generally not. There are very limited exceptions based on proving "undue hardship," which is a difficult legal standard to meet. Credit card debts, medical bills, and even mortgage debts (though you may lose the house) are typically dischargeable.