Proven Partners For Financial Health

Types Of Dischargeable And Nondischargeable Debt

At Gudeman & Associates, P.C., we are committed to ensuring our clients are fully informed about what bankruptcy can (and can’t) do. Many of our clients come to us with a misconception about what types of debts can be discharged through bankruptcy. Our bankruptcy lawyers in Royal Oak and southeastern Michigan want to ensure you know the difference before you decide to file. With more than 100 years of combined experience, our knowledgeable legal team is here to help you learn about your options.

What Types Of Debts Can Be Discharged?

If you have found yourself heavily in debt and unable to pay your bills, you may be considering bankruptcy. Once you understand the most common types of bankruptcy, Chapter 7 and Chapter 13, you can determine which is most appropriate for you. In Chapter 7, you will discharge all or most of your unsecured debt and will not have a repayment plan. With Chapter 13, a portion of your debt may be reduced or discharged, while the rest will be re-worked to establish a repayment plan.

The following types of debts can be discharged through bankruptcy:

  • Medical debt
  • Car loans
  • Credit card debt
  • Mortgages
  • Rent and utility payments
  • Certain types of taxes

Nondischargeable Debt In Bankruptcy

Although many types of unsecured debt can be discharged through bankruptcy, there are certain debts which are not discharged. This includes fraudulent debts, all restitution and fines ordered by the court, student loans, and spousal support orders. If you have a significant amount of debt that cannot be discharged, we may discuss the possibility of Chapter 11 reorganization.

There are many benefits to using bankruptcy to discharge your debt in Royal Oak and southeastern Michigan. As a respected firm with an A+ rating from the BBB, we are committed to helping you every step of the way and ensuring all of your concerns are addressed.

We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.