Are you considering filing for bankruptcy protection? The amount of relief you can get depends on the specifics of your situation, but one of the most important factors is what types of debt you have. To help you decide on this important step, here are five of the most common forms of debt and how well they can be discharged in bankruptcy.

Generally Easier: Credit Card Debt

Certainly one of the most common forms of debt in America is credit card debt. The good news is that as an unsecured debt — debt with no collateral attached — most general credit cards are the easiest debts to wipe out in any form of bankruptcy. The reason you took on credit card debt won't affect its inclusion. 

Generally Easy: Signature Loans

Personal, or signature, bank loans are given out in exchange for a promise to repay instead of collateral. These are also generally easier to have discharged in bankruptcy as long as they are considered unsecured rather than secured. 

Possibly Harder: Mortgages

Your mortgage by itself is usually fairly easy to have discharged in bankruptcy if you agree to give back the property. However, if you want to keep it, your ability to keep the home will depend on whether or not you're current on payments and which chapter of bankruptcy you choose. If you can keep the home but it's underwater, you often have the ability to ask for a 'cram down' that reduces your loan to the amount your home is currently worth, wiping off the difference. 

Generally Hard: Judgments and Support

Miscellaneous imposed payments and penalties are handled on a case-by-case basis. Unless there are very unusual reasons, child and spousal support can't be discharged. Likewise, many judgments — particularly those involving drunk driving, criminal restitution, and court fines — are not dischargeable. However, back taxes and some penalties may be allowed for discharge depending on the circumstances. 

Generally Hardest: Student Loans

Unfortunately for students, student loans are among the hardest debts to have discharged, even during bankruptcy. Only the most serious and permanent factors — such as permanent disability or fraud by the institutions — can often help. However, those with student loans should consider if the relief from having other debt discharged would be sufficient to offset this challenge. 

Where to Learn More

Want to know more about how difficult or simple it will be to have your debt discharged? Start by meeting with a bankruptcy lawyer in your state today.