Yes, bankruptcy typically eliminates medical bills and credit card debt completely. These are considered “unsecured debts” because they’re not backed by collateral like a house or car. In Chapter 7, unsecured debts are discharged entirely – you owe nothing after your case closes. In Chapter 13, you might pay back a small percentage of unsecured debts through your payment plan, but the remaining balance gets discharged after you complete the plan. Other dischargeable debts include personal loans, utility bills, old apartment leases, and business debts. Certain debts like recent taxes, student loans, and child support generally cannot be discharged, but eliminating credit cards and medical bills often provides enough relief to manage these remaining obligations.
