Bankruptcy discharges the majority of debts, but not all, and you need to be aware of that. Once you become familiar with the different ways of filing for bankruptcy, you should definitely ask dependable bankruptcy lawyers in Escondido which debts you’ll be freed from, and which ones you won’t be.

Once you finish the process of bankruptcy, you can start rebuilding your credit score and start enjoying your life again after freeing yourself from the majority of financial burdens. That is why it is important to know which debts bankruptcy discharges, and which ones it doesn’t.

Does bankruptcy discharge all debts?

The immediate answer to this question is no, bankruptcy does not eliminate all the debts you have accumulated. To be clear, bankruptcy does eliminate most of your debts, but not each and every one of them.

When you’re considering whether or not to file for bankruptcy, it is important to know which debts you’ll be left with, and which debts you won’t have to worry about anymore. Bankruptcy is a good choice, but only if you know the ins and outs of it.

What debts can bankruptcy clear?

The majority of consumer debt is called “unsecured debt”, and the great news is that bankruptcy dischargess almost all of them. The debts you will not have to fret about once you file for bankruptcy are:

  • Credit card debts
  • Lines of credit
  • Payday loans
  • Personal loans
  • Income taxes
  • Medical bills
  • Utility payments

Which debts remain after filing for bankruptcy?

As mentioned, bankruptcy cannot completely erase all of the debts you’ve made. There are some types of debts, mostly “secured debts”, that filing for bankruptcy cannot help you with. The following are debts you have to repay even after bankruptcy

  • House mortgage
  • Car loan
  • Child support
  • Student loans
  • Court fines and any other penalties related to the judicial system
  • Debts originating from misappropriation, embezzlement, and fraud

However, even though bankruptcy does not cover each and every single one of your debts, it still covers most of them. This grants you an opportunity for a new beginning and an enticement to start rethinking your fiscal policy.

Does bankruptcy cover government debt?

Debts owed to the government may or may not be dischargable. It all depends on the age and/or type of debt.

What government debt can you discharge in bankruptcy?

Bankruptcy may help you to discharge or restructure obligations owed to the government. You  need to know what you owe, whom you owe it to, when it became due and owing, and when you filed (if tax debt).

  1. Income taxes – As mentioned, income taxes is something bankruptcy can assist you with. Call Chang & Diamond to discuss
  2. SBA loans – Bankruptcy can help with SBA, or Small Business Administration debts. Call Chang & Diamond to discuss
  3. Student loans – The problem with student loans is that, most of the time, they cannot be discharged. However, if you convince a bankruptcy judge that you will suffer undue hardship attempting to repay your student loans, the judge may grant you the possibility of discharge.

However, the standards are really strict, and it is really difficult to secure even a partial discharge. You can always call upon the services of an experienced bankruptcy lawyer to help you attempt to write off your student loans.

Which government debts stay after bankruptcy?

When it comes to non-dischargeable government debts, there are three main categories:

  1. Penalties and fines – If the underlying obligation is dischargable, you may be able to discharge these as well
  2. Trust fund portion of payroll taxes – Payroll taxes may be restructured but probably not discharged.
  3. Military scholarships – Despite claiming bankruptcy, you’re still liable for any debts that result from military scholarships and incentive pay.

Which experienced bankruptcy lawyers in and around Escondido should I contact?

If you’re looking for a reputable bankruptcy attorney to help you make the most out of your bankruptcy claim, then there’s only one firm you should turn to – Chang & Diamond.

We know the ins and outs of the bankruptcy game, and we will employ all our expertise into making your bankruptcy as good as it can get. We’ll assist you in discharging all the debts possible, and provide you with a new outlook on life. Instead of taking a walk through Felicita Park, contact us and see how we can help your bankruptcy claim.

Legal Protections Against Creditor Harassment Post-Discharge


Once your debts are discharged in bankruptcy, the federal law provides strong protections against creditor harassment. Creditors are prohibited from pursuing any collection activities, including phone calls, letters, or legal action, related to discharged debts.

This shield is enforced under the Fair Debt Collection Practices Act, which mandates cessation of direct communications upon discharge. Violations can lead to sanctions against the creditor, offering peace of mind and legal recourse for debtors. It is crucial to maintain records of any post-discharge communication, as these can serve as evidence in potential legal actions.

Engaging with a knowledgeable bankruptcy attorney can help enforce these rights, ensuring that your fresh start is free from past burdens.


Frequently Asked Questions About Bankruptcy and Debt Discharge


What debts can bankruptcy discharge?

Bankruptcy typically discharges credit card debt, medical bills, and personal loans. However, it does not clear student loans, child support, and most tax debts.

How long does the bankruptcy process take?

The duration depends on the type of bankruptcy filed. Chapter 7 usually takes about 3-6 months, while Chapter 13 can take 3-5 years.

Will bankruptcy affect my credit score?

Yes, filing for bankruptcy can significantly impact your credit score initially, but it allows for rebuilding credit more straightforwardly without the burden of overwhelming debt.

Can your firm help with both Chapter 7 and Chapter 13 filings?

Absolutely, our firm specializes in handling both Chapter 7 liquidations and Chapter 13 debt reorganizations, providing comprehensive guidance tailored to each client’s specific financial situation.

comparing bankruptcy and debt consolidation