The federal bankruptcy laws allow for exemptions to discharge.  Even for folks who have no assets, some debts are just not dischargeable.  The exemption to discharge that is getting a lot of scholarly (and media) attention lately is student loans.  They are hard to discharge.  Alimony and monies owed pursuant to spousal or child support are not dischargeable in bankruptcy.  Monies secured by fraud and fraudulent activity are not dischargeable.   Judgments owed to victims of alcohol related personal injury or death cases are not dischargeable. Read more

What are adversary proceedings in bankruptcy cases and how can debtors avoid them?  Most personal no asset Chapter 7 bankruptcy cases are simple and straightforward.  Debtors file a petition with the Massachusetts Bankruptcy Court and get a Trustee Hearing in 30 days.  Generally, all consumer debts are discharged once the client testifies that s/he has made accurate assertions in the Petition and Schedules, and the Trustee is satisfied that they are accurate. Read more