Chapter 7 bankruptcy gets rid of many debts, but not all of them. It is one of the most powerful tools available to people overwhelmed by debt. For the right person, it can wipe out tens of thousands of dollars in what they owe. However, certain types of debt survive a Chapter 7 discharge no matter what, and knowing the difference before you file is important.
According to a study published by the American Bankruptcy Institute, more than 62 percent of U.S. bankruptcies are caused by medical debt, making it one of the most common reasons people turn to Chapter 7 for relief. Medical bills are also one of the debts that Chapter 7 can eliminate entirely. If you are planning to file for bankruptcy in 2026, our Naperville, IL bankruptcy lawyer can walk you through exactly what would and would not be eliminated in your case.