Five Dischargeable Debts in a Chapter 7 Bankruptcy

Five Dischargeable Debts in a Chapter 7 Bankruptcy

For many, the purpose of filing for bankruptcy is to wipe away most debts. Bankruptcy is a legal option for Americans who are finding it difficult, for whatever reason, to pay off their debts. Often, these debts are causing additional problems such as the risk of repossession of a vehicle, eviction, or foreclosure on a home. When a debt is discharged in bankruptcy, the debtor is no longer liable for paying it. Although they may choose to pay it for one reason or another, such as keeping their vehicle, they are not legally obligated to do so. If you are looking at your options for debt relief, it’s time to meet with a well-versed North Carolina bankruptcy attorney who can help you understand which of your debts can be discharged.

Credit Card Debt

Unless you recently incurred a lot of credit card debt or opened a new card, all of your credit card debt will be discharged in your bankruptcy. Not only will you no longer owe the debt, but it will also be removed from your credit report or marked as included in your bankruptcy. The credit card debt itself will no longer have an impact on your credit score.

Personal Loans

Whether you have payday loans or other types of personal loans, you can also say goodbye to these debts when you receive your bankruptcy discharge. Even personal loans from friends and family are dischargeable.

Medical Bills

It doesn’t matter if your medical bills include an emergency surgery, a NICU stay for a new baby, an ER visit for a broken leg, or copays from seeing your own doctor, bankruptcy wipes out those debts. Be sure to gather all of your medical bills and give them to your North Carolina bankruptcy lawyer so that they can ensure they are included on your list of debts.

Vehicle Repossessions and Deficiency Balances

If you had your car repossessed, you likely have fees and a deficiency balance in your name. Once you file for bankruptcy, you do not owe these debts anymore. If you still have your vehicle and want to keep it, talk to your North Carolina bankruptcy attorney about options for keeping your vehicle and reaffirming your loan.

Mortgages and Foreclosure Balances

If your home was already foreclosed upon, a bankruptcy discharge means you will not have to pay for any remaining balances.  If you are still in your home, you are no longer personally responsible for your mortgage balance. However, this does not mean you can remain in your home and not pay your mortgage. Continuing to pay your mortgage will allow you to stay in your home. This should be discussed with your attorney as well.

Seek Bankruptcy Debt Relief with a Qualified North Carolina Bankruptcy Lawyer

We have helped clients just like you find a way out from under their debt. If you are not sure how you will pay your debts, reach out to a skilled North Carolina bankruptcy lawyer. Schedule your free no-obligation bankruptcy consultation with a North Carolina bankruptcy attorney at King Law Firm by calling (855) 206-0052 or use our online contact form.