The Debts It Clears
Bankruptcy is built to erase unsecured consumer debt: credit cards, medical bills, personal and payday loans, old utility and cell balances, most lawsuit judgments, and deficiency balances left after a car or house is gone. For the family drowning in cards and medical bills, that's usually the entire problem — and it's exactly what a discharge eliminates.
The Debts It Won't
Some obligations survive bankruptcy: domestic-support (child and spousal support), most recent taxes, criminal fines and restitution, and debts from fraud, willful injury, or a DUI that hurt someone. Student loans are historically hard to discharge, though that has been getting somewhat easier through a dedicated process — it's worth a real look rather than assuming.
Secured Debt Is a Choice
Your car and house aren't 'erased' — they're a decision. You can surrender the collateral and discharge what's left, or keep it by staying current (Chapter 7) or curing the arrears in a plan (Chapter 13). The personal liability can be wiped even when you choose to keep paying.
What to Do
The real question is whether the debts crushing you are the kind bankruptcy clears — and for most families, they are. A free Caffeine Law consult sorts your debts into wiped-vs-kept so you know if it solves the problem.
Caffeine Law — free consult | Michael Benavides, Esq., CA Bar No. 270714 | 707-362-4166 | attorneymichaelbenavides.com
ATTORNEY ADVERTISING. Caffeine Law is a trade name of the law practice of Michael Benavides, Esq., California State Bar No. 270714. General information only — not legal advice, and no attorney-client relationship is formed by reading this. Bankruptcy outcomes depend on your specific facts; exemption amounts, the median-income figures, and deadlines change, so verify current numbers. Prior results do not guarantee a similar outcome.
