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  • Jose N.starstarstarstarstar5.0
    I have to say that I have had a great experience with Stiberman Law regarding a bankruptcy and they have been very informative and supportive. They have been very helpful and always ans Read More
    January 20, 2023logo
  • L.L.starstarstarstarstar5.0
    Excellent service. Great bankruptcy attorney and staff. Always informed me of what to expect. My Chapter 13 bankruptcy was smooth and the process was easy thanks to Robert and the Read More
    July 20, 2022logo
  • Sam Sstarstarstarstarstar5.0
    Twelve years ago I was in need of legal representation stemming from the housing meltdown if 2008. Robert Stiberman and his staff handled the matter with complete professionalism and sp Read More
    October 19, 2022logo
  • Jose N.starstarstarstarstar5.0
    I have to say that I have had a great experience with Stiberman Law regarding a bankruptcy and they have been very informative and supportive. They have been very helpful and always ans Read More
    January 20, 2023logo
  • L.L.starstarstarstarstar5.0
    Excellent service. Great bankruptcy attorney and staff. Always informed me of what to expect. My Chapter 13 bankruptcy was smooth and the process was easy thanks to Robert and the Read More
    July 20, 2022logo
  • Sam Sstarstarstarstarstar5.0
    Twelve years ago I was in need of legal representation stemming from the housing meltdown if 2008. Robert Stiberman and his staff handled the matter with complete professionalism and sp Read More
    October 19, 2022logo
  • K.D.starstarstarstarstar5.0
    I was looking for a bankruptcy attorney in Miami, and I found Mr. Stiberman. He and his office were efficient, and they guided me through every step of the process. I am appreciative of Read More
    September 16, 2022logo
  • Carmen C.starstarstarstarstar5.0
    I am so grateful for Stiberman Law, P.A. In 2019 my husband and were faced with a very difficult decision file for Bankruptcy, unfortunately we weren’t able to pay for our credit Read More
    October 26, 2022logo
  • N.M.starstarstarstarstar5.0
    Excellent work from this bankruptcy law firm! I was drowning in debt with my license suspended from a lawsuit I had and thought I would have to spend the rest of my life paying back deb Read More
    August 17, 2022logo
  • R.Z.starstarstarstarstar5.0
    The experience with this office has been great. No problems at all they have kept me straight to doing the right thing and feeling a breeze of peace and being debt free with my bankruptcy.
    August 30, 2022logo
  • F.starstarstarstarstar5.0
    Very happy with Robert and his team. Thanks to them we were able to save our home. Very helpful and knowledgeable in bankruptcy. Best attorney.
    July 28, 2022logo
  • E.R.starstarstarstarstar5.0
    I had a great experience, I just want thank Stiberman law and his team for a great experience also Ana for the help and explaining my case. Appreciate, thank you
    July 25, 2022logo
  • A.B.starstarstarstarstar5.0
    Very good office with my bankruptcy. They have been amazing through this hard process. Very happy with Robert and his staff they are very nice and professional. Thank you stiberman!
    July 23, 2022logo
  • W.J.starstarstarstarstar5.0
    Amazing work by Robert. They are really good with what they do, very attentive and knowledgeable. Customer service and professionalism are top, the lawyer has been great this whole t Read More
    June 25, 2022logo

Does Declaring Bankruptcy Clear All Debts?

When you file for bankruptcy, you’re doing so to relieve the burden of your existing debts that you are unable to keep up with. However, your outcome from bankruptcy may not be the clean slate you hope for as not all debts can be discharged. To help you understand what your financial obligations may be, we’re exploring whether you get out of all debts if you declare bankruptcy and what bills you will still owe when all is said and done. 

Understanding Dischargeable and Non-Dischargeable Debts During Chapter 7 Bankruptcy

If you pass a means test that looks at your income, family size, and disposable income after necessities and determines you are unable to pay much of your debt, you may be eligible for Chapter 7 bankruptcy. During this process, your debts are liquidated. A trustee goes through your assets, in rare cases selling off valuable assets, such as a second car or a boat, in order to settle debts, and when that step is completed, many of the debts left over are discharged from your credit history. 

Dischargeable Debts Under Chapter 7

  • Medical bills
  • Credit cards
  • Old utility payments
  • Personal loans

Your car and house may also be discharged under Chapter 7 if you do not keep up with payments. However, it’s important to understand that while you will be absolved of making payments, your car may be repossessed and the bank can still foreclose on the house with bankruptcy court permission or after the bankruptcy is finalized, so it is important to maintain good standing with those accounts to avoid losing them.

Non-Dischargeable Debts Under Chapter 7

When filing for Chapter 7, the following debts cannot be discharged: 

  • Federal student loans absent extremely limited exceptions
  • Tax liens absent some exceptions
  • Most federal, state, and local taxes
  • Alimony payments
  • Child support payments

Discharging Debts Under Chapter 13 Bankruptcy

Chapter 13 bankruptcy is a method of reorganization. During this process, your finances are analyzed to see if you are financially capable of paying off a portion of debt. If so, a structured payment plan is arranged, allowing you to pay a set monthly fee for three to five years to a trustee. The trustee then conveys the payment to creditors, and at the end of the time period, many of the debts are then cleared from their financial record. The same guidelines regarding what is cleared and what is not is the same as chapter 7 bankruptcy. 

However, during your reorganization, you can include your mortgage, car payment, and student loans in your debt repayment plan. After the time has elapsed, your medical debts, credit cards, and other unsecured debt will be discharged, and your student loans, car, and mortgage will resume standard payments. 

Schedule a Free Consultation with a Florida Bankruptcy Attorney Today

If you are struggling under the weight of debt, you don’t have to go through this alone. At Stiberman Law, our bankruptcy attorneys are dedicated to helping people determine if bankruptcy is the right choice for them as well as find financial freedom through bankruptcy and move forward with confidence. To schedule a free consultation, reach out to our office today at (954) 922-2283 or fill out the form below to get started. 

Written By:

Attorney Robert Stiberman

Robert is an experienced bankruptcy attorney with more than 13 years of experience in consumer Chapter 7 and Chapter 13 cases. Robert regularly practices in the Miami, Fort Lauderdale, and West Palm Beach Divisions of th... Read More

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