What types of debt can be discharged through bankruptcy?

In Nebraska, filing for bankruptcy is an option for individuals overwhelmed by debt. There are different types of bankruptcy depending on circumstances, and the type of bankruptcy chosen determines what types of debt can be discharged. The three main types of bankruptcy in Nebraska are Chapter 7, Chapter 11, and Chapter 13. In Chapter 7 bankruptcy, also known as “liquidation” bankruptcy, most types of debt can be discharged. This includes credit card debt, medical bills, personal loans, some taxes, and other unsecured debts. Chapter 7 bankruptcy does not allow for discharge of alimony or child support; student loans; court fees and fines; and some tax debt. In Chapter 11 bankruptcy, a payment plan is established to allow a business or individual to reorganize debt and pay creditors over time. The types of debt that can be discharged in Chapter 11 are similar to those discharged in Chapter 7 bankruptcy. In Chapter 13 bankruptcy, also known as “wage earner” bankruptcy, individuals reorganize their debt and repay creditors over a three- to five-year period. Generally, all or most types of debt can be discharged in Chapter 13, including credit card debt, medical bills, personal loans, and some taxes. However, alimony or child support; student loans; court fees and fines; and taxes are not typically discharged in Chapter 13 bankruptcy. Overall, based on the type of bankruptcy an individual chooses in Nebraska, different types of debt can be discharged. Generally, most types of debt can be discharged in Chapter 7 and 13, while Chapter 11 is limited to certain types of debt. It is important to consult with an experienced bankruptcy attorney to determine which type of bankruptcy fits your individual circumstances and what types of debt can be discharged.

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What types of debt can be discharged through bankruptcy?

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