What Debts Does Bankruptcy Eliminate?
Most debts can be permanently eliminated through Chapter 7 bankruptcy. Some of the debts that can be removed includes:
- Credit Cards
- Bank Loans
- Medical Bills
- Pay-Day Loans
- Certain old utility bills (electric, phone)
- School Tuition (Not student loans)
Government owed debts are not included, such as:
- Recent Personal Taxes (old taxes can be discharged in certain cases)
- Child Support
- Parking tickets
Remember, the IRS must stop all collection activity during the months the bankruptcy is processing.