Will bankruptcy discharge the entire amount of debt owed?

In Texas, the answer to the question of “Will bankruptcy discharge the entire amount of debt owed?” is not a simple yes or no. Bankruptcy law in Texas allows for the discharge of some, but not all of the debt owed. The type of bankruptcy filing and the type of debt that is owed will determine how much, if any, of the debt is discharged. For example, if someone files a Chapter 7 bankruptcy in Texas, unsecured debt such as credit card debt, medical bills, and certain other types of debt may be completely discharged. On the other hand, secured debt, such as mortgage loans, car loans, and judgments, may not be fully discharged by a Chapter 7 filing, as the secured creditor may still have a claim on certain property owned by the debtor. If someone files a Chapter 13 bankruptcy in Texas, the debtor may be allowed to reorganize certain debts, such as secured debt like a mortgage, or other types of debt that could not be discharged in a Chapter 7 case. Under a Chapter 13 payment plan, certain secured debts may be restructured and the debtor may be able to pay back only a portion of what is owed, such as the interest or principal, or a combination of both. In summary, the answer to the question of “Will bankruptcy discharge the entire amount of debt owed?” is highly dependent on the type of bankruptcy filing and the type of debt that is owed. While certain types of debts may be completely discharged in a Chapter 7 case, other types of debts may require a Chapter 13 reorganization plan in order to be discharged.

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Will bankruptcy discharge the entire amount of debt owed?

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