Discharging Debt Through Bankruptcy
Filing bankruptcy has specific advantages. Discharging debt is one of the main benefits. In simple terms, a discharge eliminates a person’s responsibility to pay back their debt. A person can receive a discharge in both a Chapter 13 and Chapter 7 bankruptcy. It is important to know that not all debts can be discharged in bankruptcy. The most common of these debts are: student loans, child support, alimony, and certain tax debt. It is important that you completely understand the impact bankruptcy may have on your personal financial situation before you decide whether to file bankruptcy.
Bankruptcy Details and Discharging Debt
The accuracy of a person’s bankruptcy petition and schedules is absolutely critical. Failure to disclose certain debts and assets could result in the loss of discharge as to that debt, or loss of that particular asset. This makes seeking the advice of a bankruptcy professional even more essential. By hiring an expert bankruptcy attorney, you can ensure that everything is handled appropriately and that you get the relief you need.
Protecting Your Home
When done properly, bankruptcy can give individuals and families the relief they need. Most people who file bankruptcy have run into serious financial trouble through no fault of their own. This could be the result of a loss of employment, divorce, or an unexpected medical circumstance. When this occurs, not only do people have a hard time meeting their monthly obligations, but they may also face home foreclosure. Filing bankruptcy can address all of these issues. Filing bankruptcy can also address other home related matter, such as second mortgages. Through bankruptcy, it may be possible to “strip-off” a second mortgage, if your first mortgage balance exceeds your home’s value.
Find out more about discharging debt, and all other bankruptcy related matters from The Cherney Law Firm, which serves Marietta and the surrounding communities.