Q: Can I discharge all of my debts in a Chapter 7 bankruptcy?
A: The short answer is: It depends. There are several exceptions listed in the Bankruptcy Code. These exceptions should be reviewed on a case by case basis with an experienced bankruptcy attorney.
Q: Do I have to continue to pay my mortgage if I file a Chapter 7 bankruptcy?
A: It depends on whether you desire to keep your home. A bankruptcy discharge will extinguish the debtor's legal obligation to make payments under the Mortgage Note. However, the mortgage lien survives the bankruptcy, which means that the mortgage company can foreclose on its collateral (the home) if payments are not made.
Q: If I signed a personal guarantee for someone else's debt and that person receives a bankruptcy discharge, am I still liable for the debt?
A: Yes. A discharge only eliminates the debtor's legal obligation to repay the debt. Any co-obligor, including someone who signed a personal guaranty remains liable on the debt.
A: Generally speaking, student loan obligations are not discharged by a bankruptcy filing unless the debtor demonstrates "undue hardship" to the court. This is a very tough standard, which a court considers in view of the specific circumstances of each case.
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