What Debt Can You Discharge?
If you are considering bankruptcy, one of the first things you need to know is what debt you can discharge. Will you be able to get rid of all of your debt? Will some of it still remain?
The answers to these questions depend on your situation and what your ultimate goals are, besides the obvious one of becoming debt-free. At Rothschild & Ausbrooks, PLLC, our lawyers have more than three decades of experience helping people just like you in Nashville and throughout Tennessee. We know how to guide you toward discharging debt through bankruptcy and other means.
Unsecured Or Secured Debt?
Most debt falls into two categories: debt that is unsecured by collateral (such as revolving credit) and debt that is secured. Bankruptcy attacks these debts in different ways, depending on whether you file Chapter 13 or Chapter 7. For the most part, unsecured debt is the most susceptible to debt discharge. However, you can also attack secured debt through bankruptcy. Our attorneys will examine your mix of debts and provide you with guidance on what chapter of bankruptcy you should file and what debts you will be able to eliminate.
We will address all types of debt, including:
What About Debt That Can’t Be Discharged?
You may not be able to discharge all of your debt through bankruptcy. For example, student loans are generally not considered dischargeable, though there are exceptions. However, most people find that, by having most other debt eliminated, remaining debt becomes much easier to manage.
How Long Until My Debt Is Discharged?
The length of time between filing bankruptcy and the discharge of your debt will depend on the type of bankruptcy you file. While discharge in Chapter 7 is much more immediate, discharge in Chapter 13 comes only after the completion of a repayment plan. In the end, though, both involve the elimination of your debt.
What Debt Should You Keep?
This may seem strange, but in some cases, you may not want to discharge all of your debt. If you want to keep your car, for example, you will have to continue making your car payments. The same is true of your house. Getting rid of other debts in bankruptcy may give you the financial freedom to make these payments, however. Our attorneys know how to make certain your case is handled according to your specific needs and goals.
Discharging your debt is what will get you out from between a rock and a hard place, which is what overwhelming debt can often feel like. Please contact Rothschild & Ausbrooks, PLLC, today to speak with our lawyers about your situation.
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.