Will Bankruptcy Eliminate All of My Debts?

 Posted on June 03, 2026 in Bankruptcy

Bankruptcy is an excellent tool for wiping out many kinds of debt, but it doesn’t get rid of all of them. Some debts may be deferred, restructured, or negotiated down, but not eliminated. Understanding which kinds of debts bankruptcy can clear will help you decide whether bankruptcy is the right move for you in 2026.

A Fort Worth, TX bankruptcy attorney can explain which debts bankruptcy is most effective against.

What Debts Can Bankruptcy Discharge in Texas?

Bankruptcy is most effective at clearing unsecured debts. These are debts that aren’t tied to a specific piece of property, such as a car or home. Unsecured debts, such as credit card debt, often have steep interest rates that can be difficult to get ahead of. Such debts are often what motivate people to file for bankruptcy.

Other common debts that can be removed by bankruptcy include:

• Medical bills

• Personal loans

• Past-due utility bills

• Most older income tax debt (if they meet certain conditions)

• Deficiency balances after a repossession or foreclosure

When a debt is "discharged," you're no longer legally required to pay it, and creditors can't try to collect it anymore. For many filers, clearing this kind of debt is enough to get back on a solid financial footing.

Which Debts Cannot Be Discharged by Bankruptcy?

Some debts remain your responsibility per federal law. Under 11 U.S.C. § 523, the following types of debt as generally non-dischargeable in bankruptcy:

• Child support and spousal support

• Most student loans (unless you prove undue financial hardship through a separate court proceeding)

• Recent income tax debt

• Certain other tax obligations

• Debts from fraud or false statements

• Court-ordered fines

• Most criminal restitution payments

• Debts for personal injury or death you caused while driving drunk

Things like child support and spousal support are calculated based on a person’s net income. In other words, they are assumed to be able to pay the amount of support the court has ordered if they are working. Criminal fines are generally not dischargeable because they are imposed as part of the criminal justice system rather than as ordinary debts.

Does the Type of Bankruptcy Change What Debts Are Discharged in Texas?

The type of bankruptcy you file affects how your debts are handled, even though the list of non-dischargeable debts stays mostly the same. Most individuals file under one of two bankruptcy chapters.

Chapter 7

Chapter 7 is often called "liquidation" bankruptcy. Eligible unsecured debts are discharged, usually within a few months. In exchange, a person appointed by the court can sell non-exempt property to pay creditors. Texas exemptions, however, let many filers keep most or all of what they own.

Chapter 13

Chapter 13 is a "reorganization" bankruptcy. Instead of a quick discharge, you repay some or all of your debts through a three-to-five-year plan. At the end, remaining eligible balances are discharged.

Choosing between Chapter 7 and Chapter 13 depends on your income, your property, and what you're trying to protect. A bankruptcy lawyer can help you figure out which chapter fits your goals.

What Do I Risk Losing if I File for Bankruptcy in Texas?

One of the biggest misconceptions about bankruptcy is that you will lose everything you own. In many cases, Texas law protects a substantial amount of a person's property.

Exemptions often let you keep your home, with no cap on value for qualifying property. They also let you keep a vehicle for each licensed driver in the household. Most retirement accounts and pensions are protected, as is "reasonable" personal property (up to set limits).

Your credit score will take a hit, and the bankruptcy will stay on your credit report for seven to 10 years, depending on the type you file. However, the state exemptions allow many Texans a true fresh start through bankruptcy. If you’re finding it difficult to keep up with your debt payments, speak to a bankruptcy attorney to find out if bankruptcy is a good fit.

Call Our Dallas, TX Bankruptcy Attorney Today

At Acker Warren P.C., you'll always speak with an attorney, never a paralegal, and we can handle your case entirely online if needed. Call us at 817-752-9033 today to schedule a free consultation with our Fort Worth, TX bankruptcy lawyer. We can complete a case completely virtual with a fast turnaround.