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Direct answer: Chapter 7 bankruptcy wipes out most credit card, medical and personal loan debt, usually about 3 to 4 months after filing, but not child support, most student loans, recent taxes or court fines. It stays on your credit report up to 10 years, and you must wait 8 years to get another Chapter 7 discharge.
By the numbers: Luxury purchases of more than $900 owed to one creditor within 90 days before filing, and cash advances of more than $1,250 within 70 days, are presumed not wiped out in bankruptcy (amounts in effect since April 1, 2025). Source: 11 U.S.C. 523(a)(2)(C), as adjusted by the Judicial Conference, 90 FR 8941
“Generally, excluding cases that are dismissed or converted, individual debtors receive a discharge in more than 99 percent of chapter 7 cases.” — U.S. Courts, Chapter 7 - Bankruptcy Basics
Updated 2026-10-22
Child support and alimony, most student loans (unless a court finds undue hardship), certain taxes, fines and penalties owed to the government, debts from injuring someone while driving drunk or high, criminal restitution, and debts you leave off your forms. Debts from fraud or recent luxury charges can also survive if the creditor wins in court (11 U.S.C. 523; U.S. Courts).
Charges for luxury goods or services of more than $900 owed to one creditor within 90 days before filing, and cash advances of more than $1,250 within 70 days, are presumed not dischargeable (the card company can ask the court to make you still owe them) (11 U.S.C. 523(a)(2)(C), amounts effective April 1, 2025). Bigger or earlier charges can also be challenged as fraud.
Up to 10 years from the date the case was filed (the order for relief), under the Fair Credit Reporting Act, 15 U.S.C. 1681c(a)(1). The CFPB says this applies to Chapters 7, 11, 12 and 13.
You can't get a Chapter 7 discharge if you got a Chapter 7 or 11 discharge in a case filed within the last 8 years (11 U.S.C. 727(a)(8)). After a Chapter 13 discharge, the wait is 6 years unless that plan paid at least 100%, or 70% and your good-faith best effort (727(a)(9)).
The court fee is $338: $245 filing, $78 administrative and $15 trustee fee. Chapter 13 is $313. You may be able to pay in up to 4 installments, and the Chapter 7 fee can be waived if income is under 150% of the poverty line and you can't pay even in installments (U.S. Courts).
It's the Census Bureau median family income for your state and household size, published by the U.S. Trustee Program. For cases filed on or after April 1, 2026, Tennessee's is $63,979 for one person and $109,585 for four. If your last 6 months of income times 12 is at or under it, the means-test abuse presumption can't be raised (11 U.S.C. 707(b)(7)).
Chapter 7 is a liquidation: a trustee can sell property that isn't protected (exempt), and most debts are wiped out in a few months. Chapter 13 is a 3- to 5-year repayment plan that lets you keep property and catch up on a mortgage to stop foreclosure (U.S. Courts).
As of Oct. 22, 2026
Chapter 7 bankruptcy wipes out most credit card, medical and personal loan debt, usually 60 to 90 days after the meeting with the trustee. It does not wipe out child support, most student loans, most recent taxes or court fines. It stays on your credit report up to 10 years, and you can't get another Chapter 7 discharge for 8 years. Below: the plain facts, the rules about charges made right before filing, Chapter 7 vs Chapter 13, and your state's median income for the means test, all from the courts, the law and the U.S. Trustee.
Sources: U.S. Courts fee schedule · 11 U.S.C. 109(h) · 11 U.S.C. 727 · 15 U.S.C. 1681c.
Usually wiped out (discharged): most unsecured debts, such as credit cards, medical bills and personal loans. Once discharged, creditors can't sue, call or garnish your pay to collect those debts.
Not wiped out (11 U.S.C. 523(a)):
Liens stay. A discharge ends your personal duty to pay, but a mortgage or car loan lien stays on the property. If you stop paying, the lender can still take the house or car. To keep a car you're paying on, some people sign a “reaffirmation agreement,” which keeps that loan alive after the case.
Property: a trustee can sell property that isn't protected (“exempt”) by federal or state law. The U.S. Courts say most individual Chapter 7 cases are “no asset” cases, where everything is exempt or tied to a loan and nothing is sold.
Sources: 11 U.S.C. 523 · U.S. Courts: Chapter 7.
The law presumes some charges made right before a bankruptcy were made without plans to pay them back. Those charges are presumed not dischargeable, so the card company can ask the court to make you still owe them. The current amounts (in effect since April 1, 2025):
| Type of charge | More than | Within | Counted |
|---|---|---|---|
| Luxury goods or services | $900 | 90 days before filing | Added up per creditor (one card company) |
| Cash advances on a credit card or credit line | $1,250 | 70 days before filing | Added up, consumer credit only |
Sources: 11 U.S.C. 523 · 90 FR 8941 · 11 U.S.C. 104.
| Chapter 7 | Chapter 13 | |
|---|---|---|
| What it is | Liquidation: a trustee can sell property that isn't exempt; most debts wiped out | A repayment plan; you keep your property |
| How long | Discharge usually 60 to 90 days after the first meeting with the trustee (about 3 to 4 months after filing) | 3-year plan if income is under the state median, usually 5 years if over; never more than 5 |
| Court fee | $338 ($245 + $78 + $15); can be waived for low income | $313 ($235 + $78) |
| Who can file | Individuals and businesses; individuals with mostly consumer debts take the means test | Individuals with regular income, under the debt limits in 11 U.S.C. 109(e) |
| Behind on a house | Doesn't catch up missed payments; the lien stays | Can stop a foreclosure and catch up missed payments over the plan |
| Co-signers | Not protected | Protected on consumer debts while the case is open |
| Next discharge | 8 years after a prior Chapter 7 case; 6 years after a Chapter 13 case (with exceptions) | 4 years after a prior Chapter 7 case; 2 years after a prior Chapter 13 case |
| Credit report | Up to 10 years | Up to 10 years under the law |
The U.S. Courts Basics pages still list a $75 administrative fee; the official fee schedule (effective Dec. 1, 2023) sets it at $78.
Chapter 13 also wipes out a few debts Chapter 7 doesn't, such as some divorce property settlements and debts taken on to pay nondischargeable taxes.
Sources: U.S. Courts: Chapter 7 · U.S. Courts: Chapter 13 · U.S. Courts fee schedule · 11 U.S.C. 727 · 11 U.S.C. 1328 · CFPB.
The court can't give you a Chapter 7 discharge if you got a Chapter 7 or Chapter 11 discharge in a case filed within 8 years before your new case was filed (11 U.S.C. 727(a)(8)). The clock runs from filing date to filing date, not from the discharge date.
Sources: 11 U.S.C. 727 · 11 U.S.C. 1328.
The Fair Credit Reporting Act says credit reports can't include bankruptcy cases more than 10 years old, counted from the order for relief (for a case you file yourself, that's the filing date) (15 U.S.C. 1681c(a)(1)). The CFPB says this applies to Chapters 7, 11, 12 and 13, and that in certain cases a bankruptcy can be reported beyond 10 years. The 10-year limit doesn't apply to reports pulled for a job paying $75,000 or more, or for credit or life insurance of $150,000 or more (1681c(b)).
The math: a case filed Oct. 22, 2026 should come off reports by Oct. 22, 2036. If something on your report is wrong, you can dispute it for free: check your credit reports and fix mistakes.
Sources: 15 U.S.C. 1681c · CFPB.
The math (Tennessee, household of 3): $8,125 a month × 12 = $97,500. The median is $97,511, so this household is $11 under. At $8,126 a month ($97,512 a year), it would be $1 over.
Sources: 11 U.S.C. 101(10A) · 11 U.S.C. 707(b) · U.S. Trustee: means testing · U.S. Courts: Chapter 7 · 90 FR 8941.
The first step of the Chapter 7 means test. Nothing you type leaves your phone.
Yearly median family income from the U.S. Trustee Program. For each person over 4, add $11,100*. This is the table for cases filed on or after April 1, 2026. The U.S. Trustee usually posts new medians in spring and fall; as of Oct. 22, 2026 no newer table is posted.
| State | 1 person | 2 people | 3 people | 4 people |
|---|---|---|---|---|
| Alabama | $64,321 | $77,451 | $92,698 | $106,740 |
| Alaska | $85,817 | $112,548 | $112,548 | $142,136 |
| Arizona | $73,935 | $89,027 | $104,965 | $121,174 |
| Arkansas | $58,421 | $73,630 | $82,329 | $97,054 |
| California | $79,253 | $102,797 | $116,541 | $139,071 |
| Colorado | $87,940 | $109,497 | $130,850 | $153,501 |
| Connecticut | $84,302 | $106,224 | $134,470 | $159,934 |
| Delaware | $69,515 | $94,877 | $111,273 | $132,244 |
| District of Columbia | $85,391 | $161,397 | $161,397 | $166,598 |
| Florida | $69,876 | $86,523 | $97,540 | $114,761 |
| Georgia | $68,478 | $84,965 | $101,479 | $123,481 |
| Hawaii | $85,254 | $106,202 | $123,454 | $142,181 |
| Idaho | $73,413 | $86,160 | $98,381 | $119,662 |
| Illinois | $73,180 | $93,934 | $113,625 | $137,902 |
| Indiana | $64,461 | $81,986 | $95,627 | $115,656 |
| Iowa | $67,617 | $88,800 | $104,133 | $126,058 |
| Kansas | $69,197 | $87,441 | $103,852 | $125,971 |
| Kentucky | $61,652 | $73,892 | $85,212 | $109,443 |
| Louisiana | $59,447 | $72,348 | $84,602 | $103,628 |
| Maine | $75,892 | $90,445 | $106,822 | $131,577 |
| Maryland | $86,928 | $114,611 | $135,949 | $166,173 |
| Massachusetts | $88,202 | $112,708 | $139,411 | $178,524 |
| Michigan | $67,352 | $83,432 | $103,449 | $123,010 |
| Minnesota | $77,696 | $98,328 | $126,487 | $149,882 |
| Mississippi | $53,978 | $70,328 | $82,846 | $97,464 |
| Missouri | $64,972 | $82,075 | $100,228 | $118,530 |
| Montana | $71,310 | $91,452 | $103,285 | $121,698 |
| Nebraska | $66,922 | $90,728 | $103,405 | $125,074 |
| Nevada | $72,222 | $87,914 | $101,638 | $114,110 |
| New Hampshire | $87,287 | $109,324 | $141,531 | $155,203 |
| New Jersey | $87,173 | $106,876 | $137,136 | $168,127 |
| New Mexico | $66,235 | $79,574 | $88,041 | $98,602 |
| New York | $73,272 | $92,902 | $115,579 | $139,040 |
| North Carolina | $67,117 | $84,384 | $101,535 | $116,737 |
| North Dakota | $73,549 | $96,352 | $106,686 | $137,817 |
| Ohio | $66,239 | $83,725 | $102,504 | $123,702 |
| Oklahoma | $61,180 | $77,208 | $86,845 | $101,798 |
| Oregon | $79,089 | $93,670 | $116,729 | $140,024 |
| Pennsylvania | $72,230 | $87,534 | $110,151 | $135,862 |
| Rhode Island | $77,653 | $98,736 | $119,419 | $137,479 |
| South Carolina | $64,808 | $83,761 | $95,672 | $116,314 |
| South Dakota | $69,190 | $89,809 | $100,883 | $130,738 |
| Tennessee | $63,979 | $82,846 | $97,511 | $109,585 |
| Texas | $66,837 | $86,714 | $99,273 | $117,962 |
| Utah | $87,898 | $95,757 | $112,751 | $131,741 |
| Vermont | $72,461 | $96,963 | $114,075 | $137,583 |
| Virginia | $78,491 | $101,171 | $123,159 | $144,826 |
| Washington | $88,585 | $107,100 | $131,737 | $156,567 |
| West Virginia | $63,908 | $68,592 | $92,050 | $93,672 |
| Wisconsin | $71,168 | $90,252 | $108,516 | $133,384 |
| Wyoming | $71,745 | $91,502 | $98,476 | $110,297 |
* +$11,100 per extra person: Per the U.S. Trustee table. The law sets this as a monthly amount per extra person that is adjusted for inflation; the U.S. Trustee figure is the one used for current filings.
Source: U.S. Trustee median income table · U.S. Trustee: means testing. Territories (Guam, Puerto Rico, U.S. Virgin Islands, Northern Mariana Islands) are on the U.S. Trustee table.
Sources: U.S. Trustee: approved credit counselors · U.S. Trustee: counseling & debtor education · 11 U.S.C. 109(h) · 11 U.S.C. 111 · U.S. Courts: Chapter 7.
For scale: 282,413 people filed individual Chapter 7 cases from Jan. 1 to Sept. 30, 2026, up 13% from 249,130 in the same months of 2025 (Epiq AACER data, ABI / Epiq, Oct. 8, 2026).
Not legal advice. These are facts from the Bankruptcy Code, the U.S. Courts and the U.S. Trustee Program, with dates. They don't say whether you should file. A bankruptcy lawyer or legal aid office can tell you how the rules apply to you, including your state's exemptions.
Child support and alimony, most student loans (unless a court finds undue hardship), certain taxes, fines and penalties owed to the government, debts from injuring someone while driving drunk or high, criminal restitution, and debts you leave off your forms. Debts from fraud or recent luxury charges can also survive if the creditor wins in court (11 U.S.C. 523; U.S. Courts).
Charges for luxury goods or services of more than $900 owed to one creditor within 90 days before filing, and cash advances of more than $1,250 within 70 days, are presumed not dischargeable (the card company can ask the court to make you still owe them) (11 U.S.C. 523(a)(2)(C), amounts effective April 1, 2025). Bigger or earlier charges can also be challenged as fraud.
Up to 10 years from the date the case was filed (the order for relief), under the Fair Credit Reporting Act, 15 U.S.C. 1681c(a)(1). The CFPB says this applies to Chapters 7, 11, 12 and 13.
You can't get a Chapter 7 discharge if you got a Chapter 7 or 11 discharge in a case filed within the last 8 years (11 U.S.C. 727(a)(8)). After a Chapter 13 discharge, the wait is 6 years unless that plan paid at least 100%, or 70% and your good-faith best effort (727(a)(9)).
The court fee is $338: $245 filing, $78 administrative and $15 trustee fee. Chapter 13 is $313. You may be able to pay in up to 4 installments, and the Chapter 7 fee can be waived if income is under 150% of the poverty line and you can't pay even in installments (U.S. Courts).
It's the Census Bureau median family income for your state and household size, published by the U.S. Trustee Program. For cases filed on or after April 1, 2026, Tennessee's is $63,979 for one person and $109,585 for four. If your last 6 months of income times 12 is at or under it, the means-test abuse presumption can't be raised (11 U.S.C. 707(b)(7)).
Chapter 7 is a liquidation: a trustee can sell property that isn't protected (exempt), and most debts are wiped out in a few months. Chapter 13 is a 3- to 5-year repayment plan that lets you keep property and catch up on a mortgage to stop foreclosure (U.S. Courts).
Estimates, not financial advice. Taxes, insurance, PMI and fees vary by lender, county and city; confirm with your lender, dealer and state agency before acting.