Bankruptcy & Foreclosure Defense Attorneys


We take the time to make it work.

What Debts Are Discharged in Bankruptcy?

bankruptcy and debt
  • Blog
  • Jill
  • No Comments
  • November 24, 2020

What Debts Are Discharged in Bankruptcy?

Unfortunately, overwhelming debt is a reality for many Americans. As various debts add up, whether due to negligence or unforeseen events, these debts can begin to weigh heavily on an individual’s life. While they may be able to stay afloat for quite some time, it can come to a point where the debt is too much for them. This is where bankruptcy might come onto the table. While it is never ideal to have to declare bankruptcy, it can allow an individual to get their head back above water financially. 

The Caveats of Bankruptcy

It is important to realize that bankruptcy is not a free pass. It requires some upfront fees and work to complete the process. Even after all that, bankruptcy does not clear every type of debt out there. There are several types of debts that it does discharge and some that it does not. In other words, individuals need to make sure they have the right type of debts for it to be a good choice for them. 

Types of debts that bankruptcy can discharge include:

  • Credit card balances (including late and overdue fees)
  • Medical Bills
  • Accounts in Collections
  • Personal loans from your employer, friends, or family
  • Past Due Utility Bills
  • Business Debts
  • Money Due from Past Lease Agreements
  • Revolving Charge Accounts (Aside from extended payment charges)
  • Claims from Auto Accidents (with the exception of drunk driving)

Of course, there is one type of debt that bankruptcy will not discharge. That is:

Student Loans – Unfortunately, student loans are typically not part of the debts that bankruptcy will discharge. There are, however, some caveats to this one. You won’t be able to discharge student loans right after you graduate or stop going to school. The only real scenario in which student loans will be discharged is if you can show that they have caused you undue hardship. To demonstrate undue burden, you must also display that you are unable to afford them in the present or through a good portion of the repayment time and that you have made an effort to actually pay off the loan. 

Neither of these lists includes all the types of debts that will or will not discharge. It is always smart to consult a lawyer when it comes to filing for bankruptcy. This way, you can be sure of the rules regarding whatever type of debt that you are dealing with. 

Bartifay Law Offers Free Consultation

If you have questions or need help filing for bankruptcy, contact Bartifay Law Offices. We have experience in this area and have helped many people begin their path to freedom from debt by filing for bankruptcy. While bankruptcy is never a pleasant situation to be in, it can be the first step toward a brighter future. We can answer any questions you may have regarding how to file for bankruptcy. 


No Comments

Leave Comment

Please enter a message.
Please enter your name.
Please enter a valid e-mail address.

Click to Call