Debts Bankruptcy May Eliminate

A discharge prevents personal collection of qualifying debts. It does not, by itself, remove a valid lien on a house or vehicle. Certain debts can survive bankruptcy, including domestic support obligations, some taxes, debts subject to applicable fraud or misconduct exceptions, and most student loans covered by § 523(a)(8). How student loans are paid during a Chapter 13 case depends on the confirmed plan and applicable procedures.

Chapter 7 can wipe out qualifying unsecured debt without a repayment plan if you pass the means test. Whether you keep a house, car, or other property is a separate exemption question. Chapter 13 is a three-to-five-year payment plan. It is often 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 student loans covered by § 523(a)(8) are not discharged simply by completing Chapter 7 or Chapter 13. Discharge generally requires a separate adversary proceeding and a court determination of undue hardship. The Department of Justice and Department of Education use a standardized process for many federal-loan discharge cases, but the bankruptcy judge makes the ultimate determination. In Chapter 13, the automatic stay generally limits ordinary collection while it remains in effect, but how student loans are paid during the case depends on the confirmed plan and applicable procedures.

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

  Some older income-tax liabilities may be dischargeable when the Bankruptcy Code’s timing, return-filing, assessment, and other requirements are satisfied. Recent income taxes, many payroll and trust-fund taxes, and other priority or excepted tax debts generally require different treatment. Chapter 13 can provide a structured way to pay qualifying tax claims.

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

  Credit-card balances are usually unsecured and are often dischargeable in bankruptcy. Recent luxury purchases, cash advances, or debts allegedly obtained through fraud can create dischargeability issues under § 523. Timing and the circumstances of recent charges can matter.

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

  Hospital, physician, ambulance, and other ordinary medical bills are generally unsecured unless a valid lien or other security interest exists. Chapter 7 may discharge qualifying medical debt, while Chapter 13 generally treats qualifying medical bills as unsecured claims under the plan. Liens, government claims, and other unusual circumstances require separate analysis.

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

  An ordinary payday or deferred-presentment loan with no collateral is generally an unsecured claim and may be dischargeable. A vehicle-title loan or title-pawn transaction is different because rights in the vehicle depend on the contract, state law, bankruptcy law, and the timing of any default, repossession, forfeiture, or disposition.

• Personal Loans in Bankruptcy — Personal Loans in Bankruptcy

  An unsecured personal or signature loan is generally treated as an unsecured claim and may be dischargeable. A loan secured by a vehicle or other collateral is different because the creditor’s lien or security interest must also be addressed. A debtor’s discharge does not automatically release a co-signer or guarantor.

• What Happens to a Co-Signer If I File Bankruptcy? — What Happens to a Co-Signer If I File Bankruptcy?

  Your bankruptcy discharge generally affects your personal liability; it does not automatically release a co-signer or guarantor. Chapter 13 provides a limited co-debtor stay for certain consumer debts, although a creditor may obtain relief from that stay in circumstances described by § 1301. A married couple may sometimes file a joint bankruptcy case. A parent, adult child, friend, or other non-spouse co-signer cannot simply be added to your joint petition and must evaluate their own legal options separately.

We will go through your bills, flag debts that often survive, and explain whether Chapter 7 or Chapter 13 fits. If you hire us, we prepare and file the case and represent you through it. Call or request a free consultation. We cannot promise that any specific debt will be wiped out.