News & Tips

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.