Chapter 7 bankruptcy gives you the chance to eliminate overwhelming debt and reset your financial future. But which debts can actually be discharged — and which ones can’t?

What Debts Are Discharged in Chapter 7 Bankruptcy?

If you’re considering Chapter 7 bankruptcy, this page will help you understand exactly what debts are wiped out and what obligations may remain after your case is complete.

What Does “Discharge” Mean in Bankruptcy?

When a debt is discharged in Chapter 7 bankruptcy, you are no longer legally required to repay it. Creditors cannot:

Sue you
Call or send collection letters
Garnish your wages
Take legal action to recover the money

In short, a discharge gives you permanent relief from certain debts.

Debts That Are Discharged in Chapter 7 Bankruptcy

Most unsecured debts (debts not tied to property like a house or car) can be discharged in Chapter 7. These commonly include:

1. Credit Card Debt

All types of credit card balances, including:

Late fees
Over-limit charges
Store credit cards

Unless the debt was incurred through fraud, it is dischargeable.

2. Medical Bills

Hospital bills, doctor bills, emergency room charges, and other health-related debts are fully dischargeable in Chapter 7.

3. Personal Loans

Unsecured personal loans — including those from banks, online lenders, friends, or family — are typically wiped out.

4. Payday Loans

Short-term, high-interest payday loans are dischargeable, even if they were taken out recently. However, lenders may object if they claim you never intended to repay.

5. Utility Bills

Past-due electric, gas, water, internet, and phone bills can be discharged. Your utility provider may require a deposit to continue service.

6. Old Rent and Lease Payments

If you’ve moved out and still owe back rent, those amounts can be included in your Chapter 7 discharge.

7. Repossessions and Foreclosure Deficiencies

If your car or home was repossessed or foreclosed on, any remaining balance you owe on the loan can be wiped out.

8. Some Older Tax Debts

Certain income taxes may be dischargeable if:

The taxes are at least 3 years old
You filed a timely return
No fraud was involved

Your bankruptcy attorney can analyze your tax situation in detail.

9. Judgments from Lawsuits

If a creditor sues you and wins a judgment for unpaid debt (like credit cards or medical bills), that judgment can still be discharged — unless it’s for fraud, injury, or certain exceptions.

Debts That Cannot Be Discharged in Chapter 7

Not all debts go away in bankruptcy. Here are the most common non-dischargeable debts:

1. Student Loans

Most student loans are not discharged in bankruptcy unless you prove undue hardship, which is difficult (but not impossible) to do.

2. Recent Income Taxes

Income taxes from the last few years usually cannot be discharged. Payroll taxes and tax penalties are also non-dischargeable.

3. Child Support and Alimony

Ongoing and past-due child support or spousal support payments are not dischargeable under any chapter.

4. Fines and Penalties Owed to Government Agencies

This includes:

Court fines
Traffic tickets
Restitution from criminal cases

5. Debts from Fraud or Malicious Acts

If you obtained debt through false pretenses, fraud, or willful injury to another person, the creditor may challenge the discharge in court.

6. Personal Injury Judgments from DUI Accidents

If you injured someone while driving under the influence, any resulting civil judgment or debt cannot be discharged.

What Happens If a Debt Isn’t Discharged?

If a debt is non-dischargeable, you’ll remain legally responsible for paying it after your Chapter 7 case is over. Your attorney can help you:

Set up a repayment plan
Negotiate with creditors
Explore alternatives like Chapter 13 if needed

How to Know Which of Your Debts Can Be Discharged

Every situation is unique. An experienced bankruptcy attorney can:

Review your full debt list
Identify which debts qualify for discharge
Help protect your income and assets
Make sure you don’t miss any debts in your petition

Experienced Chapter 7 Bankruptcy Lawyers Who Care About Your Future

Let Us Help You Through the Chapter 7 Bankruptcy Process

Filing for bankruptcy can feel overwhelming — but you don’t have to go through it alone. At Mosakowski Law, we’ve helped people throughout Florida eliminate debt and rebuild their lives.

We make the process simple, affordable, and stress-free.

Book Your Free Consultation Today

Get in touch so we can start working together.