Claims, Priorities, and Discharge
Paying Creditors and Ending Debts
Bankruptcy law establishes an order for paying claims. Secured creditors often receive payment from their collateral before many unsecured creditors. After completing the bankruptcy process, qualifying debtors may receive a discharge that eliminates personal liability for many eligible debts.
Note
Some obligations may survive bankruptcy depending on applicable law and the specific circumstances.
Summary
The bankruptcy process determines payment priorities and may provide eligible debtors with a discharge of many remaining debts.