What Debts Can Be Included in a Bankruptcy Filing?

Bankruptcy has helped many consumers who have been struggling to pay their bills get a fresh start with their finances. The option allows you to discharge or wipe away qualifying debts with a Chapter 7 bankruptcyChapter 13 bankruptcy will restructure your debt into a manageable repayment plan. While bankruptcy lets you include a wide range of debt, it is important to understand that certain kinds of debt may not be eligible. Consult with a bankruptcy attorney to have your situation evaluated.

Debt That is Typically Discharged in Bankruptcy

Secured debts such as a home loan are often included in bankruptcy.  If you are facing foreclosure the bankruptcy filing may delay foreclosure proceedings from moving forward. When proceedings are delayed, it may be until debt is discharged (if filing a Chapter 7) or a repayment plan is created (if filing a Chapter 13).  Lenders usually work with homeowners to help them keep their homes.

Credit card debt is a common type of debt included in bankruptcy since the majority of them are unsecured.  Another form of unsecured debt is medical bills which may include bills from service providers, medical offices, hospitals and etc.  Those who have suffered from serious or life-threatening illness often seek bankruptcy protection.

Debt That is Typically Non-dischargeable in Bankruptcy

There are debts that are typically non-dischargeable if filing Chapter 7. Debts including student loans, child support, alimony, criminal fees and certain tax debts are usually paid by the consumer either in full or with a payment plan.