What debts are dischargeable in bankruptcy?

In Texas, debts that can be discharged, or wiped out, in bankruptcy include credit card debt, medical bills, personal loans, deficiency judgments, and other unsecured debts. For consumer debts—debts incurred for personal, family, or household purposes—bankruptcy law provides for a discharge of almost all of them. This includes most types of consumer debt, such as credit cards, medical bills, personal loans, and other unsecured debt. It’s important to note, however, that if a debtor incurred debt by fraud, it can’t be discharged in bankruptcy. Certain types of secured debts, such as mortgages and car loans, can’t be discharged, but they can be restructured. A debtor can also surrender the collateral to the creditor, such as a property or vehicle, and discharge the debt. In addition, tax liabilities, student loan debt, child and spousal support obligations, and certain other certain types of debts can’t be discharged in bankruptcy. If a debtor files for Chapter 7 bankruptcy, any lien a creditor holds against the debtor’s property may be lifted, but the underlying debt is still owed. Finally, a debtor who files for Chapter 13 bankruptcy can have any deficiency judgment, a judgment issued by a court for the remaining balance of a debt that is not fully paid by collateral, discharged.

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What debts are dischargeable in bankruptcy?

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