You must list all debts on your Chapter 7 bankruptcy schedules without exception—even if you think they won’t get wiped out by your discharge. If you leave off a debt, you run the risk of remaining responsible for it.

What type of debt does bankruptcy get rid of?

Most consumer debt is dischargeable in bankruptcy. Chapter 7 bankruptcy wipes out medical bills, personal loans, credit card debt, and most other unsecured debt. Debt that is related to some kind of “bad act” like causing someone injury or lying on a credit application can’t be wiped out.

Can you exclude some debts from bankruptcy?

People have different concerns that make them think about excluding a creditor. It may help to know that bankruptcy laws allow a certain amount of flexibility which may satisfy your concerns. You ARE allowed, in effect, to exclude these kinds of creditors from the discharge (legal write-off) of your debts.

Do you have to include all your debts in your bankruptcy?

When you file for bankruptcy, all of your creditors stand to take a financial loss. Much like kids on the playground, these creditors expect things to be fair. The law does, too.

Do you have to pay creditors when you file bankruptcy?

This means you won’t have to pay them at the end of the bankruptcy period. However, not all types of debt are included in bankruptcy. The people you owe these debts to can still take action to get their money back. This means that before you apply for bankruptcy you should work out how you’ll deal with any debts that aren’t covered.

What happens to unsecured debt in Chapter 13 bankruptcy?

If you file for Chapter 13 rather than Chapter 7, you’ll likely have to pay back some portion of your unsecured debts through a three- to five-year repayment plan. However, any unsecured debt balance that remains after completing your repayment plan will be discharged. (See Your Debts in Chapter 13 Bankruptcy .)

Can you get your money back if you file bankruptcy?

However, not all types of debt are included in bankruptcy. The people you owe these debts to can still take action to get their money back. This means that before you apply for bankruptcy you should work out how you’ll deal with any debts that aren’t covered.