Filing for bankruptcy means receiving a number of legal protections to help you get your finances in order. One of these is the opportunity to discharge many of your debts. Not all types of debt can be discharged, however, and the amount of dischargeable debt varies from person to person. The best way to create a debt management plan is to work with a bankruptcy lawyer. With the guidelines below, however, you can better understand your options.
If the majority of your debt is in the form of credit cards, filing for bankruptcy can automatically relieve much of that, if not all. Credit card debt is most often a type of unsecured debt, which means it isn't backed up with property (like a car loan). It's important to bear in mind that not all credit card debt is unsecured, and credit cards are not the only source of unsecured debt. Most of the time, however, your credit card debt will be unsecured.
Illinois Bankruptcy Lawyer, Bankruptcy Lawyer Phoenix, Washington Bankruptcy Lawyer,
Secured debts cannot be discharged. Mortgages are one example of a secured debt. When you buy a house with a mortgage loan, the bank gets a lien on the house; in other words, it becomes a shared owner of the house. If you do not pay your mortgage, the bank can take the house from you. In some cases you can file to prevent this from happening, but it can require significant legal negotiation.
Auto loans are also secured debts, meaning the bank can reclaim your vehicle under most conditions. Student loans are not secured with property, but cannot be discharged during bankruptcy. If you have a lot of student loans, you may have to consolidate them or negotiate a new repayment plan with the bank that provided your loans.
Legal debts, such as back taxes or fines, cannot be discharged. If you are eligible for Chapter 13 bankruptcy, you can discharge a wider array of debts than with Chapter 7. Under Chapter 13, debt resulting from willful injury to property are discharged. In addition, debts incurred to pay tax debts can be discharged.
Is Bankruptcy Right For You? Talk to Bankruptcy Attorneys Free and Confidential. Licensed bankruptcy attorneys are available. Attorneys will call you to discuss your case for free. Find out if bankruptcy is right for your situation.
Rating of Atlanta Bankruptcy Attorney
Get Online Application at online Bankruptcy Lawyer.
0 comments:
Post a Comment