Debts Bankruptcy May Eliminate

A discharge is a court order that bars personal liability on qualifying debts (11 U.S.C. § 524). It does not wipe out a valid lien by itself. Section 523 lists debts that may survive, including certain taxes, domestic support, debts incurred by fraud, and most student loans unless a separate undue-hardship showing is made. Whether a particular bill is dischargeable depends on the debt type, timing, and the papers filed in the case.

Chapter 7 is designed to discharge qualifying unsecured debt without a repayment plan, if you pass the means test and exemption analysis. Chapter 13 uses a three-to-five-year plan. It can be the better fit when you need to catch up a mortgage or car, or when income is too high for Chapter 7. See U.S. Courts Bankruptcy Basics.

• Can Bankruptcy Discharge Student Loans? — Can Bankruptcy Discharge Student Loans?

  Most government-backed and qualified educational loans are excepted from discharge under § 523(a)(8) unless a court finds undue hardship in an adversary proceeding.

• Can Bankruptcy Eliminate Tax Debt? — Can Bankruptcy Eliminate Tax Debt?

  Some income taxes can be discharged if they meet strict age, filing, and assessment tests in the Code. Recent income taxes, trust-fund taxes, and many payroll taxes are not discharged. Chapter 13 can pay priority taxes over the life of a plan. Do not assume a tax balance is wipeable.

• Credit Card Debt and Bankruptcy — Credit Card Debt and Bankruptcy

  Credit-card debt is typically unsecured and often discharged. Issuers sometimes object under § 523 if there were recent large luxury charges or cash advances. Minimum payments that never reduce principal are a common reason people look at Chapter 7.

• Does Bankruptcy Clear Medical Debt? — Does Bankruptcy Clear Medical Debt?

  Medical debt is generally unsecured. In many Chapter 7 cases it can be discharged. Chapter 13 can include it in a plan and discharge remaining qualifying balances at the end. A hospital lien, pending lawsuit, or related tax issue can change the analysis.

• Payday Loans and Title Loans in Bankruptcy — Payday Loans and Title Loans in Bankruptcy

  A typical payday loan with no collateral is usually unsecured. A title loan or title pawn is secured by the vehicle. Alabama and Georgia statutes differ.

• Personal Loans in Bankruptcy — Personal Loans in Bankruptcy

  An unsecured personal or signature loan is often treated like a credit card: it can be discharged. A title loan or other loan secured by a car is a secured claim. A co-signer is not automatically protected by your discharge.

Brock & Stout can review the debts you list, identify which are likely unsecured, flag claims that may be excepted from discharge, and explain whether Chapter 7 or Chapter 13 better fits the mix of medical bills, cards, taxes, and lawsuits. We prepare and file the petition and represent you through the case. We do not guarantee that any specific debt will be discharged.