Debt
What debts can bankruptcy eliminate?
Bankruptcy can discharge many common consumer debts, but “all debt disappears” is not an accurate rule.
Debts commonly discharged in a consumer Chapter 7
- Credit card balances
- Medical bills
- Many personal loans
- Many collection judgments
- Old utility and service accounts
- Many other unsecured contractual debts
Debts that need special analysis
- Recent taxes and other tax obligations
- Student loans
- Domestic support obligations
- Debts arising from fraud or certain intentional conduct
- Criminal fines and some governmental obligations
- Debts incurred shortly before filing or under unusual circumstances
A discharge of personal liability is not the same thing as removing a lien.
A mortgage or vehicle lender may still have rights in the collateral even when personal liability on a debt is discharged. That is why “Can I keep the car?” and “Can I discharge the car loan?” are not the same question.
The debt list is only half the analysis. A useful bankruptcy review also looks at property, income, timing, recent transactions, secured loans, and what you need the case to accomplish.
Want the answer for your actual situation? General information can narrow the questions. Your facts determine the answer.
General information only; not legal advice. Bankruptcy outcomes depend on the facts, timing, chapter, creditor documents, and applicable law. Last reviewed August 2026.