A List Of Debts You Can Discharge
Before filing for bankruptcy, you need to understand which debts can be discharged and the exceptions. Could you still benefit from bankruptcy even if your debt cannot be discharged? The answer is usually yes, because the elimination of other debts may make nondischargeable debt more manageable. At the Law Offices of Brian A. Barboza, we can answer your questions and analyze your unique circumstances. From our offices located in Santa Rosa, San Rafael and Ukiah, California, we serve the North Bay and Wine Country. We will explain which of your debts will be discharged and which will not.
Debts You Can Eliminate
More debts can be discharged in bankruptcy than cannot. These include:
- Credit card debt
- Medical bills
- Car, truck and other vehicle loans
- Mortgages, including second and third mortgages and lines of credit
- Personal loans
While it’s important to know which debts are dischargeable, you probably wonder how this affects your situation. For example, can you keep your car if the loan is discharged? You may have to catch up and keep making loan payments going forward to keep the vehicle.
Categories More Difficult To Discharge
Some types of debt are extremely difficult to discharge. These categories include:
- Student loans
- Personal injury judgments due to driving under the influence
- Child support
- Spousal support/alimony
There is one type of debt that may or may not qualify based on its age: tax debt. If incurred within three years of filing bankruptcy, it cannot be discharged. Older tax balances that have grown with penalties and interest can sometimes be discharged if you meet certain criteria.
A Free Initial Consultation To Discuss Debt Relief Options
Schedule a free consultation to learn which of your debts could be eliminated in bankruptcy. Call our office at 707-304-5251 or toll-free 866-965-2831. You can also reach us by sending an email.
We are a debt relief agency. We help people file for bankruptcy relief under the U.S. Bankruptcy Code.