What debts discharge in bankruptcy?
It depends on which Chapter bankruptcy you file. In a Chapter 7, unsecured debts like medical bills and credit card charges discharge. There are a few types of debt which you cannot discharge in a Chapter 7, like: secured debt (like a car loan or mortgage), child support or other domestic support obligations, most delinquent taxes, or debt your creditors prove to the Bankruptcy court you obtained due to fraud. These are just a few examples of non-dischargeable debt. In a Chapter 13, any debt which remains to unsecured creditors after you complete your plan payments will discharge, along with some types of tax debt, and a property settlement debt ordered in a divorce decree. You should make sure you understand what debt will discharge, and what will not, before filing any type of bankruptcy.
Related Questions
- I received a discharge in a Chapter 7 Bankruptcy, but some debts that could not be discharged remain. Can filing a Chapter 13 help me with these debts?
- Are there additional benefits of filing bankruptcy, in addition to discharge of certain kinds of debts?
- What does a discharge of debts under bankruptcy mean?
