What Bills Go Away With Bankruptcy: Complete Discharge List
Most everyday bills and consumer debts disappear entirely in bankruptcy. Credit cards, medical bills, utility arrears, personal loans, and collection accounts get wiped out. This elimination of debt is called discharge, and it provides the fresh start that makes bankruptcy worthwhile.
I find that most people underestimate how much debt bankruptcy can eliminate. They focus on what survives rather than appreciating the substantial relief available for common consumer obligations. Here is a comprehensive look at which bills disappear and how the discharge process works.
Bills Discharge Overview
| Bill Type | Goes Away? | Notes |
|---|---|---|
| Credit card bills | Yes | All balances discharged completely |
| Medical bills | Yes | Hospital, doctor, lab fees eliminated |
| Personal loans | Yes | Bank loans, online lender debt discharged |
| Utility arrears | Yes | Past-due electric, gas, water bills |
| Cell phone bills | Yes | Past-due balances and early termination fees |
| Gym memberships | Yes | Past balances and contract obligations |
| Payday loans | Yes | High-interest short-term loans discharged |
| Collection accounts | Yes | Third-party collector debts eliminated |
Credit Card Debt Vanishes Completely
Credit card debt represents the most common type of obligation people seek to eliminate in bankruptcy. Whether you owe a few thousand or tens of thousands across multiple cards, bankruptcy discharges the entire balance. Interest stops accruing. Minimum payments stop being due. The debt simply ceases to exist.
This applies to all types of credit cards including major bank cards, store credit cards, gas station cards, and secured cards where you deposited collateral. The issuer writes off the balance and can never collect from you again.
The only exception involves recent charges under suspicious circumstances. If you ran up significant debt shortly before filing bankruptcy, the creditor might challenge discharge by claiming fraud. They must prove you never intended to repay. Cash advances within 70 days of filing totaling more than $1,100 and luxury purchases within 90 days totaling more than $800 are presumed fraudulent.
After discharge, credit card accounts close permanently. You cannot keep using cards that were included in bankruptcy. However, you can apply for new cards after discharge, often starting with secured cards that help rebuild credit.
Medical Bills Get Eliminated
Medical debt is the leading cause of bankruptcy filings in America, and fortunately bankruptcy provides complete relief. Hospital bills, physician charges, laboratory fees, imaging costs, prescription expenses, ambulance bills, and all other medical debt disappears in discharge.
This includes debt from routine care and catastrophic illness alike. A $500 urgent care bill and a $500,000 cancer treatment bill receive identical treatment. Both are unsecured debt fully subject to discharge. Medical collections also get eliminated.
Medical liens on property present complications. If a hospital or provider obtained a lien on your home or other property before bankruptcy, the lien may survive even though personal liability is discharged. Ongoing medical treatment can continue after bankruptcy - medical providers cannot refuse to treat you solely because you discharged their bills.
Utility and Service Bills Disappear
Past-due utility bills get discharged in bankruptcy. Electric, gas, water, sewer, trash collection, and similar utility arrears all disappear. You are not required to pay old balances that existed before filing.
Current service requires different consideration. Utilities cannot discriminate against you solely for filing bankruptcy. They must continue service as long as you pay for current usage. However, they may require reasonable deposits as security, typically no more than two months of average service charges.
Phone and internet bills discharge similarly. Past-due cellular bills, landline charges, cable bills, and internet service arrears all get eliminated. Early termination fees from contracts you broke also disappear.
Personal Loans and Installment Debt
Personal loans from banks, credit unions, and online lenders are fully dischargeable. Whether you borrowed from a traditional bank, peer-to-peer platform, or online lender, the debt disappears in bankruptcy.
Debt consolidation loans get eliminated along with the original debts they consolidated. Some people worry that consolidation loans are treated differently. They are not. Unsecured consolidation debt is dischargeable like any other personal loan.
Payday loans and high-interest short-term loans discharge completely. These predatory products often trap people in cycles of debt. Bankruptcy breaks that cycle. The payday lender cannot collect, even if they have checks or electronic access authorization.
Collection Accounts and Judgments
Debts in collections discharge just like original creditor debts. Whether a collection agency bought your debt or is collecting on behalf of the original creditor, the obligation disappears. Collectors must stop all contact once they learn of your bankruptcy.
Judgments from lawsuits creditors won are usually dischargeable if the underlying debt was dischargeable. A judgment on a credit card debt gets eliminated along with the original obligation. Judgment liens complicate matters - if the creditor recorded a lien against your property before bankruptcy, the lien may survive.
Wage garnishments stop immediately when you file bankruptcy. The automatic stay ends garnishment regardless of whether the underlying judgment is ultimately discharged. Money already garnished generally cannot be recovered, but future garnishment stops.
What Bills Definitely Do Not Go Away
While most consumer bills discharge, certain obligations survive regardless of chapter or circumstances. Understanding these exceptions prevents unpleasant surprises after your case closes.
Child support and alimony never discharge. These domestic support obligations are absolutely protected. Past-due amounts remain your responsibility, and ongoing payments continue without interruption during and after bankruptcy.
Most student loan debt survives unless you prove undue hardship in a separate adversary proceeding. The standard is high, and most attempts fail. Plan for student loans to survive your bankruptcy.
Recent tax obligations typically survive. Income taxes from returns due within three years, taxes assessed within 240 days, and taxes where returns were filed late or fraudulently cannot be discharged. Criminal fines, restitution, and government penalties survive bankruptcy. Traffic tickets, court costs, and similar government obligations remain your responsibility.
Frequently Asked Questions
Do all my bills automatically go away in bankruptcy?
Most consumer bills discharge, but some like student loans, recent taxes, and support obligations survive bankruptcy.
What happens to bills I forgot to list in bankruptcy?
In no-asset Chapter 7 cases, unlisted debts usually discharge anyway. In other cases, failure to list may prevent discharge.
Can I keep one credit card out of bankruptcy?
No. You must list all debts. The card will be closed regardless of balance when you file bankruptcy.
Will my credit card company sue me if I file bankruptcy?
No. The automatic stay prevents lawsuits, and discharge eliminates the debt permanently.
How soon after bankruptcy can I get credit again?
Secured credit cards are available immediately after discharge. Unsecured cards become available within 12-24 months for most filers.
Updated 2026-01-11