What debts can I discharge in bankruptcy?

In Alabama, filing for bankruptcy can help individuals and businesses receive a fresh start after experiencing a financial crisis. Bankruptcy can help you eliminate certain debts, known as discharging, that you have no hope of repaying. Examples of common debts that can be discharged in bankruptcy in Alabama include personal loans, credit card debt, medical bills, and certain types of income tax debt. Generally, these are referred to as unsecured debts because they do not have collateral, such as a house or car, backing them. You can also discharge private student loans, but this is generally difficult to do, and you must meet specific requirements. Filing for bankruptcy also allows you to discharge certain secured debts. This may include debts you have taken on to purchase real estate or cars, which means you no longer have to pay them back. However, you may have to return or surrender the collateral to the lender. Bankruptcy cannot discharge certain types of debt, such as child support, alimony, and certain types of tax debt. In addition, bankruptcy does not wipe out liens, judgments, and certain other types of debt. If you are considering filing for bankruptcy, you should speak with an experienced bankruptcy lawyer about which debts and liabilities you can discharge. A lawyer can help you understand all of your options and determine the best course of action for your particular situation.

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What debts can I discharge in bankruptcy?

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