Who pays your debt when you file bankruptcy?
Isabella Turner
Updated on February 13, 2026
The person who files for bankruptcy is typically the one that pays the court filing fee, which partially funds the court system and related aspects of bankruptcy cases. Individuals who earn less than 150% of the federal poverty guidelines can ask to have the fee waived.
What happens if you win a lot of money while in Chapter 13?
If you receive an inheritance or cash gift during your Chapter 13 bankruptcy, you may have to pay more into your plan. If you receive an inheritance or cash gift while in Chapter 13 bankruptcy, you might be required to amend your repayment plan and increase what you pay to unsecured creditors.
What happens to your debt when you file bankruptcy?
Debt settlement is a private transaction. Once you have qualified for bankruptcy (even if your financial straits are dire, bankruptcy is not guaranteed; more about that below), creditors must stop hounding you for money. This peace is unknown to consumers who choose debt settlement.
How much is credit card debt in Chapter 13 bankruptcy?
Joe owes $5,000 on his car and $10,000 to the IRS. To pay these claims with interest, he must pay enough into his Chapter 13 plan every month to pay $20,000 over the next three years. Joe’s credit card debt totals $40,000. Because of Joe’s income and expenses, he can afford to pay $30,000 over the next three years.
What kind of debt can you discharge in Chapter 7 bankruptcy?
While credit card debt and many other forms of debt can be eligible for discharge when you file Chapter 7, some are not. Examples of ineligible debts include alimony or child support, some taxes, certain student loans and more. If you have nondischargeable debt, you’ll be responsible for repaying it even if you file for Chapter 7 bankruptcy.
How many bankruptcy cases are discharged each year?
The American Bankruptcy Institute (ABI) did a study of PACER stats (public court records) from 2016 and found that 95.5% of the 499,909 Chapter 7 bankruptcy cases decided that year were discharged, meaning the individual was no longer legally required to pay the debt.
