Skip to content

CFP® Practice Question: Bankruptcy Discharges

Chuck lost his job last year when his company moved their factory overseas. Chuck has been unable to find another job and had to file for a Chapter 7 bankruptcy. Which of the following debts can be discharged in the bankruptcy?

  1. $10,000 of rent he owes his landlord
  2. $20,000 of taxes he owes the IRS
  3. $30,000 of alimony he owes his ex-wife
  4. $40,000 of school loans he owes to Big City Bank