![Chapter 7 Debts You Must Pay [vs. What Vanishes]](https://www.evergreenclass.com/wp-content/uploads/2026/05/Chapter-7-Debts-You-Must-Pay.jpg)
By Philip Tirone
Which debts actually go away in bankruptcy comes up in almost every initial consultation. People want a clear answer before they even consider filing. This episode brings together attorneys from across the country to walk through what gets eliminated, what doesn’t, and where things get more nuanced.
Watch the full video, or keep reading for answers to the most common questions people ask before filing.
Frequently Asked Questions
- Can bankruptcy wipe out credit card debt?
- What debts are not dischargeable in Chapter 7 bankruptcy?
- Does bankruptcy eliminate child support or alimony?
- Can divorce-related debts be discharged in Chapter 7?
- Does bankruptcy wipe out IRS tax debt?
- What is the difference between secured and unsecured debt in bankruptcy?
- Can I eliminate my car loan in bankruptcy?
- Do student loans go away in Chapter 7 bankruptcy?
- What happens if a debt involves fraud or embezzlement?
- How do I know if my debt qualifies for discharge?
FAQ: Can bankruptcy wipe out credit card debt?
Yes, bankruptcy can wipe out credit card debt in Chapter 7. Credit cards fall into the category of unsecured debt, which includes most everyday financial obligations like medical bills, personal loans, and past-due utilities. These are typically the primary debts that get discharged.
If you are thinking about filing and want to understand what applies in your specific situation, the smartest next step is to talk to someone who handles this every day. You can connect with a bankruptcy attorney in your state for a free consultation.
FAQ: What debts are not dischargeable in Chapter 7 bankruptcy?
Certain debts are not dischargeable in Chapter 7 bankruptcy. The most common examples include child support, alimony, and many obligations tied to divorce agreements. These are treated differently under the law and generally remain in place after the case is completed.
FAQ: Does bankruptcy eliminate child support or alimony?
No, bankruptcy does not eliminate child support or alimony. These are considered domestic support obligations and continue regardless of whether you file. Courts treat these as ongoing responsibilities that are not affected by a discharge.
FAQ: Can divorce-related debts be discharged in Chapter 7?
Most divorce-related debts cannot be discharged in Chapter 7 bankruptcy. If a court has ordered you to pay a specific obligation as part of a divorce, that responsibility often remains. There may be different options under Chapter 13, but Chapter 7 is more limited in this area.
FAQ: Does bankruptcy wipe out IRS tax debt?
Bankruptcy can wipe out some tax debt, but it depends on timing and other factors. Older tax debt may qualify for discharge, while more recent tax obligations usually do not. Because the rules are detailed, this is an area where a case-specific review is important.
FAQ: What is the difference between secured and unsecured debt in bankruptcy?
The difference between secured and unsecured debt determines how the debt is treated in bankruptcy. Unsecured debts, like credit cards, can often be discharged. Secured debts are tied to property, such as a car or house. If you want to keep that property, you generally continue paying the debt. If you surrender the property, the associated debt can be discharged.
If you are thinking about filing and want to understand what applies in your specific situation, the smartest next step is to talk to someone who handles this every day. You can connect with a bankruptcy attorney in your state for a free consultation.
FAQ: Can I eliminate my car loan in bankruptcy?
Yes, you can eliminate a car loan in bankruptcy if you give up the vehicle. When the property is surrendered, the remaining loan balance can be discharged. If you choose to keep the car, the loan typically stays in place.
FAQ: Do student loans go away in Chapter 7 bankruptcy?
Student loans do not go away automatically in Chapter 7 bankruptcy. In some cases, they can be discharged, but it requires an additional legal process called an adversary proceeding. This is a separate step where you must show that repayment creates a significant hardship.
FAQ: What happens if a debt involves fraud or embezzlement?
Debts involving fraud or embezzlement are treated differently in bankruptcy. A creditor can challenge the discharge of that debt by filing a claim in the case. If the court determines that the debt resulted from intentional wrongdoing, it may not be discharged.
FAQ: How do I know if my debt qualifies for discharge?
To know if your debt qualifies for discharge, you need to look at the type of debt and how it is categorized under bankruptcy law. Most unsecured debts qualify, while certain categories are excluded or require additional steps. Reviewing your specific situation with an attorney is the most reliable way to determine how your debts will be treated.
If you are thinking about filing and want to understand what applies in your specific situation, the smartest next step is to talk to someone who handles this every day. You can connect with a bankruptcy attorney in your state for a free consultation.
Disclaimer: The content on this blog is for informational and educational purposes only and does not constitute legal or financial advice. Watching our videos and reading our blogs does not create an attorney-client relationship. Always consult a licensed bankruptcy attorney or financial professional about your situation.
