What are the most common debts eliminated in Bankruptcy?

what types of debt are discharged in bankruptcy?

In bankruptcy, certain types of debt can be discharged, meaning the individual is no longer responsible for paying them. Some common types of dischargeable debt include:

1. Credit card debt
2. Medical bills
3. Personal loans
4. Payday loans
5. Utility bills
6. Certain types of tax debt (subject to certain conditions)
7. Deficiency balances on repossessed property
8. Defamation judgments
9. Certain types of wage garnishments

It’s important to note that not all debts can be discharged in bankruptcy. Non-dischargeable debts include:

1. Child support and alimony payments
2. Most student loans
3. Most taxes owed to the government
4. Fines and penalties imposed by government agencies
5. Debts incurred through fraudulent activities
6. Debts from personal injury caused by driving under the influence of drugs or alcohol.

It is important to consult with a bankruptcy attorney to understand which specific debts can be discharged in a particular case.