Which Debts Are Wiped Off in Bankruptcy?

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Which Debts Are Wiped Off in Bankruptcy?

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If you are worried about huge amounts of debts, then bankruptcy is an excellent way to get rid of them. Almost all debts are eliminated in bankruptcy, except a few say Los Angeles based bankruptcy law firm Recovery Law Group lawyers. You can regain your financial independence by opting for bankruptcy. Most unsecured debts can be wiped off in bankruptcy. the debts you can eliminate include credit card debts, medical bills, business debts, negligence claims, gasoline and store charge cards, unpaid rent, lawsuit judgements, promissory notes, utility bills, debts due to car accidents, mortgages, personal loans (payday loans), tax debts (in some cases), lease and contract obligations, auto loans and leases.

Some debts have specific rules for discharge including when and how it can occur. These include federal taxes and court judgments. Consulting an experienced bankruptcy attorney is important if you wish to understand how bankruptcy works and which debts can be eliminated through it. You can call 888-297-6023 to seek consultation with qualified lawyers. Consulting them will enlighten you regarding which debts cannot be eliminated in bankruptcy. These include:

  • Student loan debts
  • Child support
  • Alimony payments
  • Recent taxes
  • Any debt incurred after filing for bankruptcy
  • Court fines and criminal restitution
  • Any payment for personal injuries caused due to driving under the influence

Despite bankruptcy giving a fresh start, there are certain things which even bankruptcy cannot help you with. This includes keeping your assets and property. Federal laws are quite specific regarding which properties can be protected and which assets can be liquidated to pay off your creditors. Another factor contributing to this is the chapter of bankruptcy you have filed for. You can opt for either federal or state exemptions to protect your property.


    2023-04-04T08:42:11+00:00