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4. Which Type of Debt Is Not Forgiven Under Chapter 7 Bankruptcy? 1. Credit Card Debts Cannot Be Forgiven in Chapter 7 Bankruptcy. 2.

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.

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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.