One of the most important questions people ask before filing bankruptcy is whether it will actually eliminate their debt. The answer depends on the type of debt and how the bankruptcy case is handled.
Bankruptcy can eliminate many common debts, but not all obligations are treated the same. Understanding which debts can and cannot be discharged helps you decide whether bankruptcy is the right solution and why working with a bankruptcy attorney is critical.
Bankruptcy can discharge many unsecured debts, such as credit cards and medical bills. Some debts, including child support and most student loans, usually remain.
A bankruptcy attorney determines how each debt is treated based on the law and your specific situation.
Dischargeable debts are those that bankruptcy can eliminate permanently, meaning creditors can no longer collect them.
These commonly include:
When these debts are discharged, collection calls, lawsuits, and wage garnishments related to them must stop permanently.
Some debts receive special treatment under bankruptcy law and often remain after a case is completed.
These typically include:
A bankruptcy attorney can review whether any exceptions or legal strategies apply in your case.
Some debts fall into a gray area. Whether they are discharged depends on when they were incurred and how the case is filed.
Examples include:
Mistakes in handling these debts can result in them surviving bankruptcy. Experienced legal guidance is especially important in these situations.
As discussed in the earlier article comparing Chapter 7 and Chapter 13, the type of bankruptcy you file affects how debts are handled.
Chapter 7 bankruptcy focuses on eliminating qualifying unsecured debt quickly. Chapter 13 involves a repayment plan that may allow some debts to be paid over time while others are discharged at completion.
A bankruptcy attorney evaluates which chapter provides the most benefit based on your goals and obligations.
Many people assume a debt will be discharged and are surprised later when it is not. This often happens when bankruptcy is filed without proper legal advice.
A bankruptcy attorney:
At Parker & DeFresne, we help Jacksonville clients understand exactly what bankruptcy will and will not do before filing.
Even when certain debts are not discharged, bankruptcy can still provide powerful relief. Eliminating other debts often makes remaining obligations manageable.
Bankruptcy may also:
An experienced bankruptcy attorney explains how these benefits apply to your situation.
Are credit cards and medical bills always discharged?
In most cases, yes. Credit cards and medical bills are commonly discharged unless they involve fraud or other legal issues.
Can bankruptcy eliminate student loans?
Most student loans are not discharged automatically. In limited situations, discharge may be possible through additional legal proceedings. A bankruptcy attorney can explain whether this applies.
Are taxes ever discharged in bankruptcy?
Some older income tax debts may be discharged if specific legal requirements are met. Timing and filing accuracy are critical.
What happens to debts that are not discharged?
Debts that are not discharged remain legally enforceable. Bankruptcy often makes them easier to manage by eliminating other obligations.
How do I know which of my debts will be discharged?
The only reliable way is to have a bankruptcy attorney review your full debt profile and explain how the law applies to each obligation.
Knowing which debts can and cannot be discharged is a key part of deciding whether bankruptcy is the right step.
If you are unsure how your debts would be treated, speaking with a bankruptcy attorney can give you clarity before you file. Parker & DeFresne helps Jacksonville residents understand their options and use bankruptcy strategically.
The hardest part of bankruptcy is often making the first call. But if you’re already behind on payments, facing collection lawsuits, or seeing your wages garnished, the sooner you act, the more options you’ll have.
At Parker & DuFresne, P.A., we’ve helped thousands of Floridians protect their homes, cars, and income through timely and well-planned bankruptcy filings. Don’t let hesitation cost you your financial future.
Contact our Jacksonville bankruptcy attorneys today to schedule a consultation. Together, we’ll build a strategy that stops the damage and helps you start fresh — on your terms, and at the right time.
This is not a journey to take lightly, but it is also not one to take alone. If you need to file for bankruptcy, reach out to us today to start your journey with us.
If you want to learn more about the options you have and the steps to take, contact us today for a consultation.
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