What Kind of Debts are Eliminated with a Dallas Bankruptcy?

For some reason, many people have different ideas about what types of debts are eliminated in a bankruptcy. Ask any one of your friends or family members, and you’ll experience a myriad of opinions. Some will insist that you’ll lose your house to bankruptcy, while others are convinced that all debts – even tax debts and student loans – are eliminated by filing a bankruptcy in Dallas.

If you are looking for a straightforward answer as to which kinds of debts are eliminated with a personal bankruptcy, you’ve found the right place. Our Dallas bankruptcy attorneys have complied a list of the debts you can wipe out – and which ones will remain in place once the bankruptcy smoke clears.

Debts That can Be Eliminated With Bankruptcy in Dallas, TX

Medical Debts

Under federal law, medical debt can be wiped out by filing a personal bankruptcy. It’s not just you who’s breathing a sigh of relief at this news – as a vast majority of bankruptcies are caused by unexpected medical bills, this provides significant financial relief for much of the country.

Credit Card Debts

Filing for a personal bankruptcy in Dallas will allow you to eliminate credit card debts . However, please note that there are certain exceptions to this rule. For example, if you decide to go on a spending spree with your credit cards before filing for bankruptcy, the Dallas bankruptcy courts may throw out your case due to fraud. To ensure that your credit card debts are paid off, you need to show that they were only used to purchase necessities, like food, clothing (no designer clothes!), and housing.


If you want to stay in your home for the foreseeable future, it pays to file for a Chapter 13 bankruptcy if you are behind on your mortgage. This rearranges all of your debts into a new and much more manageable repayment plan. In order to file for Chapter 7 bankruptcy your mortgage must be current, but other debt can be eliminated which can help lessen your other financial burdens.

Student Loans, Alimony/Child Support, and IRS Debts

Unfortunately, filing for a personal bankruptcy in Dallas won’t get rid of student loan debt , alimony/child support payments, and some IRS debts . Bankruptcy courts will only dismiss the former if you can show that paying the student loans will greatly interfere with a reasonable standard of living. However, the burden of proof on this is severe, so get ready to show Dallas bankruptcy courts plenty of evidence.