What Debts Can Bankruptcy Eliminate? Florida Bankruptcy Attorney Explains

For many individuals and families facing overwhelming financial challenges, bankruptcy offers a path toward a fresh start. One of the most common questions people ask is: What debts can bankruptcy eliminate, and which debts will I still owe afterward?

The answer depends on several factors, including the type of bankruptcy you file, the nature of your debts and your specific financial circumstances. While bankruptcy can eliminate many forms of unsecured debt, certain obligations are generally not dischargeable under federal bankruptcy law.

At Hoskins, Turco, Lloyd & Lloyd, our Florida bankruptcy attorneys help clients understand their options and navigate the bankruptcy process with confidence. Below, we answer some of the most frequently asked questions about bankruptcy discharges.

What types of debt can bankruptcy eliminate?

Many common consumer debts can be discharged through Chapter 7 or Chapter 13 bankruptcy, including:

• Credit card debt
• Medical bills
• Personal loans
• Payday loans
• Utility bills
• Collection accounts
• Certain civil judgments
• Deficiency balances after vehicle repossessions
• Older lease obligations
• Some business-related debts

These debts are generally considered unsecured, meaning they are not backed by collateral such as a house or vehicle.

Can credit card debt be eliminated through bankruptcy?

In many cases, yes. Credit card balances are among the most commonly discharged debts in bankruptcy.

However, there are exceptions. Debts resulting from fraud, intentional misrepresentations or luxury purchases made shortly before filing may not be dischargeable. Courts may closely examine recent charges if they appear to have been incurred without an intent to repay.

Can medical bills be discharged?

Yes. Medical debt is generally dischargeable in bankruptcy and is one of the leading reasons many individuals seek bankruptcy protection.

Whether the bills stem from an emergency room visit, hospitalization, surgery or ongoing treatment, bankruptcy may provide relief from overwhelming medical expenses.

Can personal loans and payday loans be discharged through bankruptcy?

Generally, yes. Most unsecured personal loans and payday loans can be discharged through bankruptcy.

This includes loans from banks, finance companies, online lenders and individuals, provided there is no evidence of fraud or other circumstances that would make the debt non-dischargeable.

Can student loans be discharged through bankruptcy?

Student loans are among the most difficult debts to discharge. Historically, borrowers had to prove “undue hardship” through a separate legal proceeding known as an adversary proceeding. While recent policy changes have made relief more accessible in some situations, student loan discharge remains challenging and highly fact-specific.

If student loan debt is a significant concern, speaking with an experienced Florida bankruptcy attorney is essential.

What debts usually cannot be discharged in bankruptcy?

Certain debts are generally excluded from discharge under federal bankruptcy law, including:

• Most student loans
• Child support obligations
• Alimony or spousal support
• Recent income tax debts
• Criminal fines and restitution
• Debts resulting from fraud
• Debts arising from intentional misconduct
• Certain government penalties
• Debts incurred through embezzlement or theft

The specific facts of each case can affect whether a debt is dischargeable.

Can tax debts be discharged?

Some tax debts may be dischargeable, but many are not. In general, older income tax debts may qualify for discharge if they meet specific requirements involving filing dates, assessment periods and other legal criteria. Payroll taxes, fraud penalties and many recent tax obligations typically cannot be discharged. A Florida bankruptcy attorney can review your tax history to determine whether relief may be available.

Can bankruptcy eliminate child support or alimony?

No. Domestic support obligations, including child support and spousal support, are generally not dischargeable in bankruptcy. These obligations remain enforceable even after a bankruptcy case is completed.

What happens to secured debts like mortgages and car loans?

Bankruptcy does not automatically eliminate liens on secured property.
If you wish to keep a home or vehicle, you generally must continue making payments according to the loan agreement. If payments are not maintained, the lender may still have the right to foreclose or repossess the collateral.

Depending on your circumstances, Chapter 13 bankruptcy may offer options for catching up on missed payments.

How do Chapter 7 and Chapter 13 affect dischargeable debts?

Chapter 7 bankruptcy focuses on eliminating qualifying debts through liquidation.

Chapter 13 bankruptcy involves a court-approved repayment plan lasting three to five years, after which eligible remaining balances may be discharged. The type of bankruptcy that best suits your situation depends on your income, assets, debts and long-term financial goals.

How can I find out which of my debts can be discharged?

Every financial situation is unique. The dischargeability of a debt often depends on factors such as the type of debt, when it was incurred and whether any exceptions apply.

An experienced bankruptcy attorney can review your financial circumstances, explain your options and help you determine which debts may be eliminated through bankruptcy.

Ready to explore your debt relief options?

Call 866-930-6435 to speak with our Florida bankruptcy attorneys

If overwhelming debt is preventing you from moving forward, you do not have to face it alone. Bankruptcy may provide a powerful path toward financial stability, stopping creditor harassment, preventing collection actions and helping you eliminate or restructure debt. The key is understanding which solution is right for your unique circumstances.

For decades, the Florida bankruptcy attorneys at Hoskins, Turco, Lloyd & Lloyd have helped individuals and families throughout the Treasure Coast and across Florida regain control of their financial futures. Whether you are struggling with credit card debt, medical bills, wage garnishments, foreclosure or other financial challenges, our team can help you evaluate your options and develop a strategy tailored to your goals.

Contact us today for a free and confidential consultation by calling 866-930-6435.