What Debts are Dischargeable?

Debts that are generally dischargeable in bankruptcy include credit card debts, unsecured personal loans, outstanding medical bills, overdue utility bills and other types of unsecured obligations owed by a debtor. With secured debts, liens are generally discharged in special circumstances, via special proceedings. However, a debtor’s personal liability on the secured debt is almost always discharged in bankruptcy. An example of this is a mortgage: by filing bankruptcy a debtor may remove his or her personal obligation under the mortgage note, but the mortgage lender may still exercise its rights to foreclose on the property in the event of a default.
It is important to note that certain debts, like student loans and recent tax debt are generally non-dischargeable in bankruptcy.