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Finance Questions, Loans, Insurance & Investment Advice Latest Questions

Jewel
JewelKnowledge Seeker
Asked: September 28, 20232023-09-28T22:41:30+00:00 2023-09-28T22:41:30+00:00In: Money & Business

Could debt be erase by bankruptcy?

At times someone might need to declare bankruptcy when he or she is unable to pay the dept so actually does bankruptcy has the ability to erase all debt hold by someone

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4 Answers

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  1. Rimisha
    Rimisha Knowledge Seeker I am students and I am always eager to expand my knowledge and share it with others.✨
    2023-09-29T09:31:13+00:00Added an answer on September 29, 2023 at 9:31 am

    Bankruptcy can provide debt relief, but not all debts can be completely erased. The specific types of debts that can be discharged vary depending on the bankruptcy chapter filed. However, certain debts like student loans, child support, and some tax obligations are generally not dischargeable. ConsuRead more

    Bankruptcy can provide debt relief, but not all debts can be completely erased. The specific types of debts that can be discharged vary depending on the bankruptcy chapter filed. However, certain debts like student loans, child support, and some tax obligations are generally not dischargeable. Consulting with a bankruptcy attorney is advisable for personalized guidance.😊

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  2. yusra
    yusra Trusted Adviser
    2023-09-29T13:56:44+00:00Added an answer on September 29, 2023 at 1:56 pm

    Bankruptcy can eliminate many types of debt, but not all debts can be discharged through bankruptcy. Here are some key points on debt discharge through bankruptcy: - Credit card debt - Most unsecured credit card balances can be erased through Chapter 7 bankruptcy. However, luxury purchases right befRead more

    Bankruptcy can eliminate many types of debt, but not all debts can be discharged through bankruptcy. Here are some key points on debt discharge through bankruptcy:

    – Credit card debt – Most unsecured credit card balances can be erased through Chapter 7 bankruptcy. However, luxury purchases right before filing may be nondischargeable.

    – Medical debt – Hospital bills and other medical debts are usually dischargeable. Certain healthcare costs incurred right before filing may not.

    – Personal loans – Signature loans, payday loans, and cash advances directly to a borrower can generally be discharged in bankruptcy.

    – Past due utilities – Debt owed to utility companies for past services can typically be wiped out through bankruptcy. Ongoing service cannot.

    – Civil judgments – If sued by a creditor, resulting legal judgments can often be discharged via bankruptcy.

    – Mortgages – Primary home mortgages and home equity loans generally cannot be discharged through bankruptcy. The lender can still foreclose if you default.

    – Car loans – Loans for vehicles purchased more than 910 days before filing are usually dischargeable. Newer loans will have proceeds from vehicle liquidation applied.

    – Taxes – Most tax debt, including back taxes owed to the IRS, cannot be discharged through bankruptcy. Certain exceptions apply.

    – Child support – Child support and alimony payments in arrears cannot be wiped out through bankruptcy. Ongoing support obligations remain intact.

    – Student loans – Student loans are almost never dischargeable in bankruptcy except in cases of permanent disability or proven undue hardship.

    The ability to discharge specific debt depends on the nature of the debt and the timing of when it was incurred. Speak to a qualified bankruptcy attorney to understand how different debts would be treated.

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  3. Svishok
    Svishok Expert Mind
    2023-09-29T14:32:14+00:00Added an answer on September 29, 2023 at 2:32 pm

    Bankruptcy can discharge certain types of debts, providing relief to individuals or businesses overwhelmed by financial obligations. However, not all debts are dischargeable, and the process has long-term consequences on credit and financial reputation. Chapter 7 and Chapter 13 bankruptcies offer diRead more

    Bankruptcy can discharge certain types of debts, providing relief to individuals or businesses overwhelmed by financial obligations. However, not all debts are dischargeable, and the process has long-term consequences on credit and financial reputation. Chapter 7 and Chapter 13 bankruptcies offer different approaches to debt resolution, involving liquidation or reorganization. It’s a complex legal process requiring careful consideration of individual circumstances and long-term financial implications.

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  4. aboy01
    aboy01 Trusted Adviser Digital Entrepreneur | Knowledge Sharer | Smart Income Mentor
    2026-05-24T11:47:52+00:00Added an answer on May 24, 2026 at 11:47 am

    Bankruptcy can help erase or reduce certain debts, but it does not automatically clear all financial obligations. In many cases, unsecured debts like credit cards may be discharged, depending on the bankruptcy type and laws in a country. However, some debts such as student loans, child support, taxeRead more

    Bankruptcy can help erase or reduce certain debts, but it does not automatically clear all financial obligations. In many cases, unsecured debts like credit cards may be discharged, depending on the bankruptcy type and laws in a country. However, some debts such as student loans, child support, taxes, and court fines usually remain. Bankruptcy should be seen as a legal financial relief process, not a complete reset of all debts, and it often has long-term effects on credit history.

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