Will bankruptcy discharge the entire amount of debt owed?

The answer to this question about Bankruptcy Law in Massachusetts depends on the type of bankruptcy you file for. If you file for Chapter 7 bankruptcy, called liquidation bankruptcy, then it is likely that your entire amount of debt will be discharged. This means that you no longer have to pay back any of the debt to your creditors. However, Chapter 13 bankruptcy, called reorganization bankruptcy, requires you to repay a portion of your debt over a period of three to five years, and any remaining debt not paid in full at the end of the repayment period will be discharged. It is important to note that not all kinds of debt can be discharged in bankruptcy. Some types of debt, such as student loans, child support, alimony payments, and certain tax debts, cannot be discharged and must still be paid in full. Additionally, some debts are only partially discharged, such as those associated with personal injury lawsuits where you are responsible for the other party’s medical bills. Ultimately, the answer to this question will depend on the type of bankruptcy you file for and the specific debts you owe. It is important to talk to a bankruptcy attorney to understand the best way to address your financial situation.

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Will bankruptcy discharge the entire amount of debt owed?

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