Generally, yes. However, certain debt is not typically eliminated. Generally, “secured loans” (i.e., loans secured by collateral, such as your house or car), can be eliminated in a bankruptcy by electing to “surrender” the secured items, and if a deficiency is owed, such deficiency can be eliminated.
However, there are certain types of debt that are generally not discharged in a bankruptcy. They include child and spousal support obligations owed, most student loans, court restitution orders and fines, certain tax debts, wages owed to employees.
The good news is that most other types of common debt are generally discharged. Such debt includes credit card debt, medical bills, personal loans, and other similar forms of unsecured debt.The good news is that most other types of common debt are generally discharged. Such debt includes credit card debt, medical bills, personal loans, and other similar forms of unsecured debt.
The process of filing for bankruptcy relief is riddled with sensitive deadlines and legalities. Further, adding the complexities of determining which debts are dischargeable or non-dischargeable poses potentially serious ramifications to the debtor(s) if not properly handled, and should therefore be handled by an experienced bankruptcy attorney. Please contact our office to schedule to obtain the experienced assistance of attorney, Gregory E. Nassar.