Question # 1:  What kind of bills can I wipe out in bankruptcy?

Generally, if you go through bankruptcy your goal is to wipe out your unsecured debts.  Your unsecured debts are typically major credit cards, department store cards, personal loans or lines of credit from banks, medical bills, or any other money you may owe someone that is not secured.

Basically, major credit cards, etc., are called unsecured because you have not put up any collateral for the loan.  When you file bankruptcy, usually these unsecured debts are wiped out, and you no longer have to pay them.

But, if you put up some property as collateral for a loan, then the debts is secured.  Typical examples of secured debts are home loans and car loans. 

If you file bankruptcy and want to keep a home or a car you are still making payments on, then you will need to keep making your payments.  Just because you are filing bankruptcy doesn't mean you can stop making your home or car payments! Unless of course, you are willing to give up the property.  You'll learn more about how these items are handled in bankruptcy when you read  Question 3. Can I keep my car and my home.

Please note: Some unsecured debts, such as court fines or support payments usually cannot be wiped out in a chapter 7 bankruptcy.  Talk to a qualified bankruptcy attorney to see about other helpful bankruptcy options.