When you are facing extreme debt problems, filing for bankruptcy may be your best option.
While filing for bankruptcy can stop most collection actions and eliminate many types of debt, it doesn’t stop all creditors or wipe out all obligations.
As you explore your bankruptcy options, here are some helpful tips from the Kansas City attorneys Kentner and Wyatt.
Types of Non-Dischargeable Debts in Bankruptcy Filing
Student loans, child support, alimony, and most tax debts are not covered when filing for bankruptcy. Filing for bankruptcy can stop creditor and collection harassment and also prevent wage garnishments.
Which Debts Are Dischargeable?
Credit Card Debt and Other Unsecured Debt
Dischargeable debts are obligations that can be dismissed by your bankruptcy file.
Unsecured debt means a debt that the purchased property was not promised back under the condition of nonpayment. Unsecured debt has no collateral backing and requires no security for the lender.
Filing for bankruptcy will relieve you of most nonpriority unsecured debt, including credit card debt, medical bills, utility payments, personal loans, and even gym contracts.
Secured debts are those in which you have an asset as the collateral for the loan. While you can wipe out most secured debt with bankruptcy, such as a mortgage or car loan, you will not be able to keep the property and must return it or pay what you owe.
Commonly Discharged Debts:
- Credit Card Debt
- Medical Debts
- Including Dental
- Car Loans
- Personal Loans
- Payday Loan
- Past Utility Loans
- Divorce Decree Debt
- Business Debt
Should I File for Chapter 13 or Chapter 7?
While both Chapter 7 and 13 can offer you unique solutions to your debt problems, these options work very differently. One of the more notable differences is the time that it takes to remove debt.
Chapter 7 Bankruptcy
Chapter 7 takes, on average, three to four months to complete. This type of bankruptcy is primarily for low-income filers below the median income who are current on secured property they wish to retain. Meaning it won’t help you keep the property if you’re behind on your payments.
Chapter 13 Bankruptcy
When filing for Chapter 13, you may have to pay back a portion of your unsecured debts. This may be in the form of a three to a five-year repayment plan. After completing your repayment plan, all unsecured debt will be discharged.
Eliminate Your Debt with Kansas City Bankruptcy Attorneys Kentner Wyatt
Ready to take the next step to become debt free? You don’t have to do it alone. Our bankruptcy services can help you choose which chapter will offer you the most benefit and eliminate the debt you need to get back on your feet.
Get a peace of mind and the legal support you need to get a fresh financial start. Our Kansas City bankruptcy attorneys can help you get debt-free and take advantage of the benefits of filing for bankruptcy today. Contact us to request a free bankruptcy consultation.