One of the first questions anyone considering bankruptcy asks: which debts can I eliminate? The answer depends on the type of debt and the chapter you file under.
Debts That CAN Be Discharged
- Credit card debts
- Medical and hospital bills
- Unsecured personal loans
- Past-due lease obligations
- Overdue utility bills
- Certain taxes older than 3 years (with specific conditions)
- Civil judgments (in many cases)
Debts That CANNOT Be Discharged
- Federal student loans (except in cases of "undue hardship", a very high bar)
- Child support and alimony
- Recent federal taxes (generally the last 3 years)
- Debts from fraud or intentional misconduct
- Criminal fines and restitution
- DUI-related debts causing injury or death
The Special Case of Student Loans
Student loans are notoriously hard to discharge in bankruptcy. However, changes in 2023-2024 made the "undue hardship" process more accessible. If student loans are an unbearable burden, it's worth discussing this specifically with an attorney.
Know Your Options
Each financial situation is unique. At Centro de Acción Legal we analyze your specific debt and explain exactly what can be eliminated in your case. Free consultation.