What Debt Can You Discharge in Bankruptcy?

Minnesota's Bankruptcy Law Firm for More Than 40 Years

Whether you file Chapter 7 bankruptcy or Chapter 13 bankruptcy, the ultimate goal of your bankruptcy is to eliminate or reorganize your debt. Debts that are eliminated are considered to be "discharged." When debt is discharged, a creditor can never again seek to collect on it. Evidence of the debt and your bankruptcy will remain on your credit report for up to 10 years, but in all other aspects, it will be as if the discharged debt had never existed.

Certain types of debt cannot be discharged in a Chapter 7 or Chapter 13 bankruptcy, including student loans, most taxes, child support, alimony and debt incurred by fraud.

What Debt Can You Discharge? Contact Prescott Pearson & Tande, PA

Types of debt that can be discharged include:

  • Credit card balances
  • Medical bills
  • Dentist bills
  • Personal loans from friends or family members
  • Second mortgage debt surviving foreclosure.

If you are filing a Chapter 13 bankruptcy, past-due lease or mortgage payments and other installment loan payments will be lumped together and included in your debt reorganization plan along with other debts such credit card accounts, bank loans and contractual obligations.

Some debtors choose to have their mortgages and/or car loans included in a bankruptcy. Talk to a bankruptcy attorney about how these types of loans can be discharged, and about whether you can keep your house or car. In most cases, the key question is whether you want to reaffirm these debts and continue making payments — or allow the debt to be discharged and give up the house or car.

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To learn more about your debt relief options, including Chapter 7 and Chapter 13, call our bankruptcy lawyers today or contact us online. We offer free initial consultations, quality services at competitive rates and effective representation statewide.

We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.