Types of Debt Wiped Out by Bankruptcy

If you’re considering the option to file for bankruptcy it’s best for you to look into all of your options for filing and how easy the process for filing for bankruptcy can be. If you find yourself struggling in debt, eliminating some of your debts is an excellent way to get back on track. The types of debt that you can eliminate by filing for bankruptcy can vary depending on the type of bankruptcy that you are filing for.

The Benefits of Filing for Bankruptcy Now

Both types of bankruptcy can give you benefits such as the ability to halt creditor harassment and collections, stop calls for collection, delay lawsuits, stop repossession or foreclosure, and more.

The Debt You Can Remove With Chapter 7

Chapter 7 bankruptcy options will give you the chance to wipe out credit card debt, medical debt personal loans, and more. The amount of debt that you can discharge will often come down to the property that you own, your income, and the type of unsecured assets you may have.

Chapter 13

Chapter 13 will analyze your debts, your salary, and your ability to repay your debts. Under chapter 13, you will establish a 3-5 year repayment plan that could discharge part of your debts. Under chapter 13, you will be responsible for repaying a portion of your debts while also accessing forgiveness for some debts like a portion of your mortgage, lowering your car payments, or excusing some of your medical debts. Using chapter 13 can also ensure that you can pay back child support and your income tax in a budget-friendly method.

If you would like to learn more about the types of debt you could wipe out with a bankruptcy, contact our team today. We can help you learn more about the types of debt that can be managed with the assistance of each bankruptcy type. We can help you decide on the ideal style of bankruptcy to suit your current financial situation.

This post was written by Trey Wright, one of the best bankruptcy lawyers in Tallahassee FL! Trey is one of the founding partners of Bruner Wright, P.A. Attorneys at Law, which specializes in areas related to bankruptcy law, estate planning, and business litigation.

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