It's all we do!

Can Bankruptcy Wipe Out All Debt?

Chesterfield Bankruptcy Frequently Asked Questions FAQs

Yes, Chesterfield bankruptcy helps you start over financially, but it cannot wipe out all debt.

Bankruptcy is a powerful and effective legal tool that can help people eliminate their debt and restart their financial life. While it can often protect assets and discharge costly payments, it may not wipe out all debt. Certain types of debt cannot be removed through bankruptcy. 

Here, we discuss these types of debt and how they can be addressed.

Bankruptcy cannot wipe out all debt of this type

Bankruptcy Cannot Wipe Out All Debt of This Type 

In Chapter 7 and Chapter 13 bankruptcy cases in Chesterfield, VA, most of the debt is discharged or erased. You do not have to pay this debt, and creditors cannot seek payment from you. This is true for many types of debt, including credit card debt.

The federal Bankruptcy Code lists 19 categories of debt that are difficult or even impossible to discharge. The government determined that these obligations must be paid, either due to the nature of the debt or because the debt was incurred as a punishment. The most common of these debts include:

  • Child and spousal support. Bankruptcy cannot wipe out debt that results from your obligation to a former spouse or your children. You will need to pay what you owe at the end of the process.
  • Student loans. Student loan law has changed since 2020. Although you must still prove extreme circumstances for a discharge in bankruptcy, your Federal student loan payments could be $0 per month with the right payment plan. Private loans and tuition assistance directly from a university are often handled differently.
  • Taxes. Like student loans, it is difficult but not impossible to eliminate tax debt. The strict rules and deadlines that you must meet to obtain a discharge are complex, and not everyone may be eligible.
  • Restitution or personal injury. If you were involved in a DUI accident or other court case that resulted in restitution or payment to a victim, you must pay. When your careless action hurts another, you are obligated to pay that debt.

Even if you cannot entirely wipe out debt through bankruptcy, filing for Chapter 13 or Chapter 7 bankruptcy can help you address your debt burden. It can help make your financial obligations that remains, manageable. Consolidation and other repayment options can be arranged.


Whether it can wipe out all debt or give you extra time to pay isn't it worth a call?

If you or someone you love is struggling under the weight of their financial burden, contact the experienced attorneys at Chesterfield Bankruptcy Law today. Help is available to wipe out debt. Learn more about your options in Chesterfield Virginia and schedule a free, no-obligation consultation.

Please enable JavaScript in your browser to complete this form.
Summarize your situation to help us understand your concerns.

About the Author

Leave a Reply

Your email address will not be published. Required fields are marked *

You may also like these

Call Us Skip to content