Discharging of Debt
Dischargeability Of Debt Through BankruptcyWhat Debts Can Be and Cannot Be Discharged in Bankruptcy?
One of the strongest benefits of a Chapter 7 bankruptcy is its ability to discharge all or most of your debt (depending on the type of debt you have). The following are examples of types of debt that can be discharged in a Chapter 7 bankruptcy:
- Credit card debt
- Debt from unpaid medical bills
- Defaulted rent payments (payments due prior to filing and listed on the schedule of debts)
- Defaulted homeowners association fees (fees due prior to filing; you may need to pay these if you plan to remain in the home)
- Defaulted utility bills
- Car accident liability judgments (unless the accident resulted from drunk driving)
- Certain unpaid taxes that are at least three to four years old (state and federal tax obligations are treated differently)
- Unsecured personal loans (loans not secured by collateral)
- Certain secured loans, such as a car loan (as long as you are willing to surrender the collateral)
- Certain other types of debt
Nondischargeable Debts - Debts That Cannot Be EliminatedWhile a significant amount of your debt can be discharged in a Chapter 7 bankruptcy, there are certain debts that cannot be eliminated. Child support arrearages, spousal support obligations, student loans and recent unpaid taxes are examples of some debts that cannot be discharged in bankruptcy. Liability resulting from a car accident caused by your drunk driving and liability for felony crimes also cannot be discharged.
If you have a significant amount of nondischargeable debt — debt that cannot be eliminated in Chapter 7 bankruptcy - we can help you determine if a Chapter 13 bankruptcy would be a better debt relief strategy. Under Chapter 13, this debt can be consolidated into your repayment plan and paid back over a period of three to five years. Our Woodland Hills bankruptcy debt discharge attorneys take special care to tailor our advice to your unique financial situation.
Lawyers Helping You Discharge Eligible Debts Through BankruptcyMany people who are dealing with unmanageable debt have questions about what debt can be eliminated - discharged - through bankruptcy. At the Abbasi & Associates, we have considerable success in helping individuals and couples in eliminated most of their debt problems through a Chapter 7 bankruptcy. Our Woodland Hills bankruptcy debt discharge lawyers can answer your questions, examine your situation and identify which debts you can discharge in a Chapter 7 bankruptcy.
Call (818) 888-6614 for experienced and reputable bankruptcy advice from one of our attorneys. Contact our law firm to arrange your free initial consultation at one of our California bankruptcy law offices.