Filing bankruptcy allows people to get a “fresh start” in their finances however after you file bankruptcy you have to learn how to stay out of debt and how to take better care of your finances. If you are facing this situation; then chances are you want to know about the common debts that are discharged in bankruptcy.

Common Debts Discharged In Chapter 7 Bankruptcy:

  • Credit Cards
  • Mortgages
  • Health Bills
  • Auto Loans
  • Personal Loans
  • Utility Bills

If you decide to file a Chapter 13 Bankruptcy; then you should know that none of your debts are discharged in this type of bankruptcy. Instead you promise to pay your debts back to the creditors and the trustees of the court will work with your financial affairs to make it affordable so that you can get back on track. However they will set up your payments to ensure that your debt is paid off completely in 3-5 years.

Once you set up the payment plan with the court; then you can change the monthly payments. So I would think about which type of bankruptcy you need to file to get back on your feet and which one is going to benefit you the most.

Most people who are drowning in debt and just want to get a brand new start; usually choose to go with a Chapter 7. Of course the decision is yours and you should decide which one is going to provide you peace of mind. Remember both of these types of bankruptcies are going to cause you to learn how to rebuild your credit so that you can get your credit score back up to help you later on in life when you are trying to get new loans for a home or anything else that you desire.

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