It depends on the kind of bankruptcy. With liquidation bankruptcy, like Chapter 7, you can ask that your debts be discharged—in other words, that they be wiped out. This may require surrendering some property to sell to satisfy creditors. Chapter 13 requires repayment of some debts, in part or in full, but is spread out with a payment plan. Some debts are never discharged with bankruptcy, such as child or spousal support and tax debts. Student loans are only discharged if you provide evidence that paying them constitutes an undue financial burden; discharge of student loans is rare.
Will bankruptcy wipe out all of my debts?
About the Author: Cristina Perez Hesano
Cristina is the managing partner at Perez Law Group, PLLC. Our mission is to make reputable and trustworthy legal representation available to every client. We offer competent and experienced legal representation in a welcoming environment at reasonable prices, Cristina Perez Hesano provides representation to individuals in personal injury, bankruptcy, litigation, and estate planning. Set up a consultation with one of their attorneys today. Call Perez Law Group, PLLC at (602) 730-7100.