Can all my debt be discharged by filing Chapter 7 bankruptcy?
Being buried in debt is something far too many people in Atlanta are struggling with. And while being unable to keep up with bills and other payments is stressful enough, it is not just the money troubles that make this situation so unbearable. There are also the relentless letters and calls from collections agencies and the looming fears about the future.
It may not be long before people in this situation reach a breaking point. They may see no end to the harassment and the penalties for missed payments may be adding up faster than ever. At this point, it may be crucial to explore the option of filing for Chapter 7 bankruptcy protection in order to have certain types of debt discharged.
There are many types of debt that can be wiped out by Chapter 7 bankruptcy, though not all debt may be discharged. This is an important distinction to make because a person may want to consider alternatives to Chapter 7 if much of their debt is not eligible for relief.
Some types of debt commonly discharged in Chapter 7 include:
- Credit card debt
- Medical bills
- Unpaid utility bills
- Personal loans
- Money owed for personal injury claims (in some cases)
Debts that a person can still be responsible for paying because they may not be discharged in Chapter 7 often include:
- Most types of student loans
- Child support payments
- Debts not specified in a bankruptcy filing
- Some taxes
Carefully considering the types of debt that a person is dealing with can be crucial in identifying effective relief options. If, for example, a person is dealing with debt due in large part to student loans and alimony, Chapter 7 may not be right.
But if a person has these same financial obligations in addition to considerable medical bills, Chapter 7 can be a good way to have debt from medical bills discharged. This can make it easier for a person to get back on track with other payments, like those student loans and alimony payments.
Discussing specific types of debt with an attorney can help people across Georgia get an idea of what they can do ease the stress and anxiety associated with their financial burdens.