economy
January 10, 2026
What can you not do in a Chapter 7 bankruptcy?
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TL;DR
- Chapter 7 bankruptcy cannot discharge certain debts such as student loans, recent taxes, child support, alimony, and most court-ordered fines.
- Filers cannot keep unlimited non-exempt property; a bankruptcy trustee can sell excess assets to pay creditors.
- There is an eight-year waiting period before one can file for Chapter 7 bankruptcy again.
- Hiding assets or income is illegal and can lead to dismissal of the case, debts remaining, or criminal prosecution.
- Incurring new debt shortly before filing with the intent to discharge it can result in those debts being deemed non-dischargeable.
- Alternatives like debt settlement and debt consolidation may be more suitable depending on debt types and financial goals.
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