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Law Office of Gordon Mosley
A Bankruptcy & Consumer law Firm
20 Years Experience Helping People Gain A Fresh Start

Does Chapter 7 bankruptcy eliminate all my debts?

No one ever wants to file for bankruptcy, but for Texas residents who are struggling with debt, it may be the best option. The most common form of bankruptcy for individuals is Chapter 7 bankruptcy. While Chapter 7 bankruptcy will eliminate many of your debts, there are certain debts that will not be discharged.

Generally, student loans are not discharged in a Chapter 7 bankruptcy, but the court may choose to discharge it if the judge determines that the loan imposes an undue hardship. Courts will consider three main factors when determining whether to discharge your loan. First, they will look at whether paying off the loan makes it impossible for you and your family to maintain a minimum standard of living. Next, they will look at whether your financial situation will last for a significant portion of the repayment period. Finally, they will consider whether you made a good-faith effort to repay the loan in the past.

Student loans are not the only debts that will remain after filing for Chapter 7 bankruptcy. Other remaining debts may include child support, alimony, government-imposed fines and restitution, and recent taxes. Additionally, debts that were not dischargeable in a previous bankruptcy will also likely remain this time around.

It can be difficult to determine the consequences of filing for bankruptcy without the help of an experienced professional. If you are considering bankruptcy as an option, a bankruptcy attorney can give you a more realistic picture of what to expect if you file and let you know which of your debts will remain after you file. Once you have a clear picture of what bankruptcy will entail, you can make a more informed decision about your financial future.

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Law Office of Gordon Mosley

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4411 Old Bullard Rd.
Tyler, TX 75703

Phone: 903-266-1843
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