Commonly known as "straight bankruptcy" or liquidation bankruptcy, Chapter 7 bankruptcy is an option for many struggling with debt in Mississippi. Since many debts can be discharged under Chapter 7, many debtors will gravitate towards this option since repayment is not feasible. Still, it's important to know that not every type of debt can be discharged via Chapter 7 bankruptcy. As a result, those considering filing for this type of bankruptcy may wish to learn more.
Under Chapter 7, many common sources of overwhelming debt can be discharged; these include credit card debt and many types of medical debt. However, there are certain other forms of debt for which a debtor remains legally responsible. These include student loans, taxes and debts stemming from fraud or drunk driving. In addition, many types of debt related to family law are also non-dischargeable; these include child support obligations, alimony or spousal support and property settlements stemming from divorces.