What debts are dischargeable in bankruptcy?

In Iowa, most debts that are dischargeable in bankruptcy are those that have been created as a result of a person incurring consumer debt. This includes credit card debt, medical bills, personal loans, payday loans, repossession balances, and certain utility bills. Some types of debt are not dischargeable in bankruptcy, including child support, alimony, student loans, certain taxes, and fines and restitution imposed by a court. In Iowa, bankruptcy can wipe away most debt, as long as it is consumer related. When a person files for bankruptcy, the court can largely wipe away all or a portion of their debt. Bankruptcy does not eliminate all debt. For example, filing for bankruptcy will not erase any debt that has been secured with collateral, such as mortgages and car loans. These debts must still be paid in full or a payment plan must be established with the lender. In Iowa, debts like back taxes and criminal fines are also not dischargeable in bankruptcy. In addition, even if a debt is dischargeable, other parties such as co-signers or guarantors may still be held liable for the debt. Finally, certain types of debts such as student loans may only be discharged in certain circumstances. Bankruptcy is a powerful tool that can provide relief for people who are struggling to get out of debt. However, it is important to understand what types of debt are dischargeable and what types are not. It is also important to know that even if a debt is dischargeable, other parties may still be liable for the debt. It is best to contact a qualified bankruptcy attorney in order to determine the best course of action.

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What debts are dischargeable in bankruptcy?

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