When people think of bankruptcy, they often imagine wiping out all their debts and starting over with a clean slate. But the truth is — not all debts are treated equally in the eyes of the law.
Some debts can be fully discharged (meaning you’re no longer legally obligated to pay them), while others survive bankruptcy and must still be repaid. If you’re filing in Georgia, here’s what you need to know about which debts go away — and which ones stick around.
✅ Debts That Can Be Discharged
Whether you’re filing Chapter 7 or Chapter 13 bankruptcy in Georgia, you may be eligible to eliminate most or all of the following types of debt:
- Credit Cards
Including store cards, gas cards, and rewards cards. - Medical Bills
Hospital, doctor, ER, and surgery-related charges. - Personal Loans
From banks, credit unions, payday lenders, or friends/family. - Utility Bills
Past-due balances on electric, water, gas, and phone bills. - Old Lease Balances or Eviction Debt
(If you’ve already moved out.) - Judgments from Lawsuits
If they’re based on breach of contract or unpaid consumer debt. - Deficiency Balances on Repossessions or Foreclosures
If a lender sold your car or home for less than you owed.
💡 In Chapter 13, some of these debts may be repaid partially through a 3-to-5-year plan — and the rest discharged at the end.
❌ Debts That Cannot Be Discharged
Unfortunately, some debts are protected by law and can’t be wiped away in a bankruptcy filing:
- Child Support and Alimony
These are considered top priority debts and must always be paid. - Certain Taxes
While some older tax debts may qualify for discharge, most recent income taxes and all payroll taxes do not. - Student Loans
These are notoriously difficult to discharge unless you can prove “undue hardship” — a high legal bar. - Court Fines and Criminal Restitution
Includes traffic tickets, probation fees, and any penalty imposed by a criminal court. - Debts Incurred Through Fraud
If a creditor proves you lied to obtain credit, that debt may be non-dischargeable. - Drunk Driving Judgments
If someone was injured or killed and you were driving under the influence, that debt cannot be erased.
⚖️ What About Secured Debts Like Mortgages and Car Loans?
Secured debts are tied to property, like a house or vehicle. Bankruptcy doesn’t automatically eliminate these — unless you’re willing to surrender the collateral.
- If you want to keep the property (your car or home), you must continue making payments.
- In Chapter 7, you may “reaffirm” the debt or redeem the asset by paying its value.
- In Chapter 13, you can catch up on missed payments over time and keep your property.
🧾 Discharged Doesn’t Mean Forgotten
Even when a debt is discharged:
- The creditor can’t collect from you anymore.
- You’re no longer legally responsible for paying it.
- But the debt may remain on your credit report for several years (especially if it was delinquent before you filed).
That said, most clients of Newnan Bankruptcy report significant credit score increases within a year or two of filing.
👨⚖️ Talk to a Bankruptcy Attorney in Georgia Before You File
Every case is different, and certain debts that seem non-dischargeable might have exceptions — or strategic options — you don’t yet know about.
At Newnan Bankruptcy, Attorney H. Brooks Cotten personally evaluates every case and helps clients:
- Understand which debts they can eliminate
- Create a realistic strategy for debt they must repay
- Avoid costly mistakes or surprises after filing
📞 If you’re overwhelmed by debt and unsure what can actually be erased, reach out to schedule a free consultation. We’re here to guide you — judgment-free.
