What Debts Can Be Discharged In Bankruptcy?

In bankruptcy, certain debts are discharged, which means that the petitioner is no longer legally required to pay them. Other debts are not discharged and the petitioner remains legally responsible for paying them.

The types of debts that are commonly discharged in bankruptcy include:

1. Credit card debt
2. Medical bills
3. Personal loans
4. Payday loans
5. Deficiency judgments (the difference between the amount owed on a repossessed car and the sale price of the car)
6. Most judgments resulting from lawsuits

However, some types of debts are generally not dischargeable in bankruptcy, including:

1. Most taxes
2. Child support and alimony payments
3. Student loans (in most cases)
4. Debts resulting from fraud or embezzlement
5. Debts arising from personal injury caused by driving while intoxicated
6. Fines and penalties imposed by a governmental agency

It’s important to note that the rules regarding discharge of debts in bankruptcy can vary depending on the specific circumstances and the type of bankruptcy being filed. It’s always a good idea to consult with a bankruptcy attorney to determine which debts may be discharged in your case.