Will Filing for Bankruptcy Help Eliminate All of Your Debts

If you’re struggling with overwhelming debt, you might be wondering: Will filing for bankruptcy help eliminate all of your debts?

No, filing for bankruptcy will not eliminate all debts. While many unsecured debts like credit card balances and medical bills can be discharged, certain obligations—such as child support, alimony, most tax debts, and court fines—remain non-dischargeable.

With decades of experience helping individuals regain financial stability, I’ve guided countless clients through the bankruptcy process to determine which debts can be eliminated and which obligations remain. Let’s explore what bankruptcy can and cannot do for your financial future.

Can Bankruptcy Wipe Out All Your Debts?

When considering bankruptcy as a solution to financial woes, one pressing question often arises: Can it clear all your debts? The answer is nuanced, as bankruptcy can indeed alleviate many debts, but not all.

Dischargeable vs. Nondischargeable Debts

Bankruptcy has the potential to discharge many types of debt, allowing you to start fresh. Common debts that can be relieved through bankruptcy include:

  • Credit card balances
  • Medical bills
  • Personal loans

However, certain obligations remain untouched by bankruptcy. These include:

  • Certain tax obligations
    Taxes owed to the government might still be collectible, depending on their type and age.
  • Domestic responsibilities
    Debts like child support and alimony are still your responsibility even after filing.
  • Debts from fraudulent behavior
    If debts were accumulated through deceitful practices, they are typically not forgiven.
  • Liabilities due to illegal activities
    Financial obligations resulting from criminal acts, such as those from accidents caused by intoxication, remain intact.
  • Student loans
    These are notoriously difficult to discharge, requiring specific criteria to be met for any chance of relief.

Navigating Your Financial Future

Understanding which debts can be discharged through bankruptcy is crucial for anyone considering this route. It can reshape your financial landscape significantly, but it’s important to be informed about the debts that will linger. Seeking advice from a financial expert or a seasoned attorney can provide clarity on how bankruptcy laws apply to your unique situation.

Other Frequently Asked Questions: