What Debt is Discharged?

A common myth associated with bankruptcy is that all debt can be discharged. This is untrue. While most debt can be eliminated through bankruptcy, there are certain types of debt that cannot be discharged. This is just one of many reasons it is important to discuss your particular case with an attorney - to determine exactly what impact a filing your petition will have on you now and in the future.

Generally, bankruptcy only addresses unsecured debt. This is debt that is not backed by collateral. Credit card debt, utility bills, medical bills, personal loans, dental bills, cell phone bills and similar types of debt may all be considered unsecured debt and may be discharged through bankruptcy. Except in certain circumstances, bankruptcy cannot eliminate secured debt (debt backed by collateral), taxes, student loans, child support and spousal support.

There are ways to address these other types of debt, however, with the right approach. A Chapter 13 bankruptcy filing may offer a debtor the opportunity to include back taxes or past due mortgage payments in his or her repayment plan. Depending on the type and age of the tax, taxes may also be discharged through Chapter 7 or Chapter 13.

You can take this opportunity to find out more about how to eliminated debt and get a fresh financial start. All you have to do is schedule a free and confidential consultation with a Westchester County bankruptcy lawyer at our law firm. At the Bronson Law Offices, P.C. we are committed to providing our clients with accurate information and practical advice to help them through the decision-making process when it counts the most. You can talk about the debt you are dealing with and can find out exactly how we can handle this through bankruptcy or perhaps another form of debt relief.

Contact our law firm today to talk to an attorney about your concerns. We are here to guide and assist you.