What Debts Are Discharged in Bankruptcy?
Certain debts are wiped clean in bankruptcy. Other debts, such as taxes, may or may not be erased. And some debts cannot be discharged. I am an experienced bankruptcy attorney who can determine if you qualify for a discharge of debts or whether you may need to seek alternatives.
At the Law Office of Giles W. King in Southaven, Mississippi, I provide my clients with sound legal counsel and quality legal representation. As a sole practitioner, I personally handle your bankruptcy case and work to maximize your debt relief. I represent individuals and couples in DeSoto County and surrounding areas of both Tennessee and Mississippi.
Find out what debts you could discharge in bankruptcy. Call my suburban Memphis office at 662-298-4597 or 888-549-3902 today or contact me online.
Secured Debts vs. Unsecured Debts
A secured debt is any debt that is tied to collateral such as a mortgage or auto loan or boat loan. If you can't keep up with the payments, the lender or creditor can repossess or foreclose.
An unsecured debt is credit extended without any collateral. In a Chapter 7 bankruptcy, most unsecured debts are eliminated such as:
- Credit cards and charge cards
- Cash advances
- Medical bills
- Signature loans (smaller personal loans)
- Many judgments
- Some back taxes
Some financial obligations are treated as secured debts and generally cannot be discharged in bankruptcy. These include child support and alimony, criminal fines, personal injury judgments and student loans.
What About Non-Dischargeable Debts in Bankruptcy?
If you are able to discharge a lot of unsecured debt such as credit card debt, it should free up money to make your loan payments and other obligations. However, if you have mostly secured debt or non-dischargeable debts, a Chapter 13 bankruptcy still buys you breathing room by spreading repayment over several years.
As your lawyer, I will conduct a thorough analysis of your finances to determine whether to continue paying on your secured debt (mortgage, car loan) or surrender the asset and walk away from the arrears. Bankruptcy allows you to catch up on your arrears without penalty, but can you afford the payments?
Southaven Secured Debt Attorney
Bankruptcy may turn out to be the right solution, but I believe strongly that people should explore other options such as working with creditors before resorting to bankruptcy.
Talk to a Southaven and Olive Branch unsecured debt attorney to discuss all your debt relief options. Contact my law office today to schedule a free initial consultation.
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.