Bankruptcy Discharge Debt Lawyers

Eliminating Debt through Bankruptcy Discharge

A bankruptcy “discharge of debt” is legal terminology for “eliminating or forgiving debt.”

According to the U.S. Bankruptcy Court, “A bankruptcy discharge releases the debtor from personal liability for certain specified types of debts. In other words, the debtor is no longer legally required to pay any debts that are discharged.”

When you file Chapter 7 bankruptcy, you can eliminate your unsecured debt.

You may be wondering what the difference is between secured and unsecured debt. Secured debt is a debt that has some property or asset tied to it, which acts as collateral. A credit union may repossess your car and sell it for fair market value as payment for the debt you owe.

If you neglect to pay the loan on your house, the lender may foreclose and seize the house. Your home acts as collateral for the mortgage.

What Debts are Dischargeable in a Bankruptcy?

Here is a brief listing of dischargeable debts in a Chapter 7 bankruptcy filing:

• Medical bills
• Debts from credit cards
• Old unpaid utility bills
• Pay day loans
• Certain types of tax debts

Your debts will be discharged at the end of your Chapter 7 bankruptcy. This usually occurs 4 to 6 months after you file your Bankruptcy Petition.

A bankruptcy debt discharge lawyer at Vidrine Law Firm, PLC, can meet with you during a free consultation, review your financial history, and tell you which of your debts may qualify to be discharged in Chapter 7 bankruptcy.

Chapter 13 Dischargeable Debts

You will receive a discharge of debts in a Chapter 13 debt repayment plan once you have made all the payments outlined in your plan. This occurs within 3 to 5 years, depending on your individual plan agreement.

The Bankruptcy Court will not issue a discharge unless you are current with your priority debts, such as child support, alimony and state and federal income tax debts.

The good news is that you can pay back the money you owe to creditors on a schedule that
is affordable to you. You will also receive a discharge of any remaining debt at the end of
the 3 to 5 year repayment plan.

The new bankruptcy laws are complex. By hiring an experienced debt discharge lawyer at Vidrine Law Firm, PLC, who is knowledgeable in bankruptcy law, you can discharge many of your debts and obtain peace of mind as you rebuild your financial future.

For more information, contact us at 520.885.1106. Come in today for a free consultation.