Legal Question in Bankruptcy in Vermont

Re: Chapter 7 in VT

In general, whether a debt is dischargeable is determined by

federal law, not state law. The determination as to the dischargeability of a

debt is usually made in an adversary proceeding in the bankruptcy case.

In answer to your second quesion, most Ch7 cases are what are called "no asset" cases

where the debtor does not have non-exempt assets for a trustee to sell and distribute the proceeds to

creditors. Exemptions vary from state to state and a debtor can also opt to use the

federal exemptions. Debtors may also avoid judgement liens against their property in the

bankruptcy court if they can show that the lien impairs exemptions which they are entitled to.

This is a real "bare bones" answer and you should probably seek competent bankruptcy advice

to protect your interests.