Which Debts Does Bankruptcy Actually Erase?

When people picture bankruptcy, they picture a clean slate. That image is mostly right: a Chapter 7 discharge (11 U.S.C. § 727) erases the great majority of ordinary consumer debt, permanently.

What a discharge wipes out

• Credit card balances
• Medical bills and hospital debt
• Personal loans and payday loans
• Old utility, phone, and rent balances
• Repossession deficiencies and most judgments

What survives

The law draws careful lines in 11 U.S.C. § 523: child support and alimony, most student loans, recent income taxes, court fines, and debts arising from fraud are generally not discharged.

Who qualifies

Eligibility runs through the means test (11 U.S.C. § 707), which compares your household income to Kentucky's median for your family size. Read the full statute-by-statute guide on this page.

By Dalton Stanley · About the author · More from the blog

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Dalton Stanley is the attorney responsible for the content of this website. Principal office located at 156 Ky Oil Village, Betsy Layne, KY 41605. The information provided on this website is for general educational and informational purposes only and does not constitute formal legal advice. Viewing this website or submitting a contact form does not create an attorney-client relationship. Licensed to practice law in the Commonwealth of Kentucky. THIS IS ADVERTISING MATERIAL. We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.