Money that you borrow in exchange for a promissory note is almost always dischargeable in bankruptcy. As with any debt, however, the court may refuse to discharge a loan debt if the creditor can prove that you acted fraudulently. But that almost never happens.
4. What type of debts are not dischargeable in a chapter 7?
Under bankruptcy law, there are several categories of debt that are “not dischargeable.†This means that you will still owe this debt after your bankruptcy case is finished;• Some debts can’t be discharged under any circumstances.• Some will not be discharged unless you convince the court that the debts fit within a narrow exception to the rule.• Some will not be discharged, but only if the creditor convinces the court that they shouldn’t be.
5. Are secured debts dischargeable?
Some types of secured debts are contractually linked to specific types of property and this called collateral. If you don’t pay the debt, then the creditor can take back the collateral. The most common type of secured debts include loans for cars and homes. If you have a debt that secured by collateral, then bankruptcy eliminates your personal liability for the underlying debt. Thereafter,  your secured creditor can’t sue you to collect the debt itself. Unfortunately, bankruptcy doesn’t eliminate the secured creditor’s lien on the property that served as collateral under the contract. Thus, you can’t keep your car or your home unless you agree to pay your secured creditor. Other types of secured debts that arise involuntarily, as a result of a lawsuit judgment or an enforcement action by the IRS on taxes are also not wiped out. In these cases, too, bankruptcy gets rid of the underlying debt, but may not eliminate a lien placed on your property by the IRS or a judgment creditor.
6. What type of debts are not dischargeable under any circumstances?
There are certain debts that bankruptcy doesn’t affect you at all: You will continue to owe them just as if you had ever filed.a. Domestic Support Obligations
Any debts that are defined as “domestic support obligations†are not dischargeable. Domestic support obligations include child support, alimony and court ordered day care expenses.To be considered a non-dischargeable debt a domestic support obligation must have been established-or must be capable of becoming established-in:
- a separation agreement, divorce decree, or property settlement agreement
- an order of a court that the law authorizes to impose support obligations, or
- a determination by a child support enforcement agency (or other government unit) that is legally authorized to impose support obligations.