financing

Which Debts Can Be Discharged Through Bankruptcy?

If you are facing overwhelming debt, bankruptcy can be a powerful tool to help you recover financial freedom. Bankruptcy can help you put an end to most collection actions, such as creditor harassment, wage garnishments, lawsuits, and more. It can also help you eliminate most of your debt within months. However, bankruptcy can only help you eliminate a specific type of debt.

Which Debt Can Bankruptcy Help Me Eliminate?

If your primary goal is to wipe out your debt as quickly as possible, Chapter 7 bankruptcy may be the right option for you. Most people file for Chapter 7 because it can help them easily discharge their debt in about four months after filing the bankruptcy petition. However, it is important to keep in mind that Chapter 7 bankruptcy often requires the liquidation of assets, meaning that you might not be able to keep some of your property.

Below is a list of commonly discharged debts through Chapter 7 bankruptcy:

  • Credit card charges, including overdue and late fees
  • Collection agency accounts
  • Medical bills
  • Personal loans
  • Utility bills
  • Business debts
  • Veterans assistance loans
  • Money owed under lease agreements
  • Car accident claims
  • Attorney fees (except child support and alimony award)
  • Student loans (only if you can prove undue hardship)

Experienced Irvine Bankruptcy Lawyers

If you are dealing with overwhelming debt and you face foreclosure or wage garnishment, bankruptcy can help you get your finances back on track. Our Irvine bankruptcy attorneys have helped families and individuals throughout Irvine regain control of their financial situation. We know that filing for bankruptcy can be scary, but we aim to make it easier with $0 down upon filing. We can also analyze your financial situation and help you determine the best course of action to achieve your desired results.

Contact our Irvine bankruptcy attorneys today at (949) 570-5025 to schedule a case review!

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