Priority Debts in a No-Asset Case

Wasson and ThornhillEffects of Bankruptcy

In a Chapter 7 no-asset bankruptcy case, the trustee collects nothing from you and pays nothing on your debts, including your priority ones.   Most Chapter 7 Cases Are No-Asset Cases Chapter 7—“straight bankruptcy”—is the most common type of consumer bankruptcy case. They are generally the most straightforward, lasting about 4 months start to finish. Usually everything you own is … Read More

Debts Not Discharged in Chapter 7

Wasson and ThornhillEffects of Bankruptcy

Sometimes not all your debts are discharged—legally written off—in Chapter 7. Some you might want to pay; others you legally can’t discharge.   Two blog posts ago we ended by saying that most general unsecured debts get legally written off—“discharged”—in a Chapter 7 bankruptcy case, but that there are some exceptions. We’ll get into those exceptions now. These exceptions include … Read More

How Chapter 7 Deals with General Unsecured Debts

Wasson and ThornhillEffects of Bankruptcy

In a Chapter 7 case your unsecured debts are either priority or general unsecured. Chapter 7 legally writes off all or most of the latter.   Last time we said there are two kinds of unsecured debts, “priority” and “general unsecured”: “Priority” debts are those that the law treats as special for various reasons. Past-due child support and unpaid recent … Read More