You May Not Be Able To Discharge All Debts In Chapter 7
For many people, Chapter 7 bankruptcy has the power to wipe out most or all consumer debts. The potential of eliminating debt is one of the strong attractors of a Chapter 7 bankruptcy. The conclusion of bankruptcy is known as a debt discharge, and in Chapter 7, that usually means debts no longer exist once the bankruptcy is complete.
Discharging Debt In Chapter 7: Get Excited About Your Next Paycheck Again
Even if you cannot eliminate all of your debts, getting out from under most credit card debt, payday loans, medical bills, and bank loans is often enough to give you the breathing room you need to live more comfortably and smile about your future again.
Many types of consumer debt can be eliminated through Chapter 7 bankruptcy, including:
- Credit card balances
- Payday loan balances
- Bank fees
- Medical bills
- Installment loans
- Bank loans
- Business loans
- In some cases, some old tax debts
- Damages arising from some lawsuits
But some cannot be, including:
- Student loans
- Child support
- Most taxes
- Court costs and fines
- Certain other obligations, to be discussed with your attorney
Let’s Start By Discussing Your Debt Load And Lifestyle Choices
A frank conversation with a bankruptcy law attorney should help you determine whether Chapter 7 bankruptcy is right for you, and which debts of yours will be taken care of if you file. Questions about tax debt tend to be too complex and fact-specific to be able to make generalizations about on a website such as this. Talking to a lawyer can help you avoid critical mistakes.
Free Initial Consultation | Memphis, Tennessee, Chapter 7 Bankruptcy Lawyer
The law office of Ben Sissman is a debt relief agency that helps people file for bankruptcy relief under the Bankruptcy Code.