Credit cards, student loans, car payments, past due utilities; If you are facing outrageous debts that are keeping you from being able to live your life and build a financial future, it may be time to start thinking about whether bankruptcy could be the answer. While there are many things you can do to catch up on payments or postpone debts, eventually they will just grow and lead to more frustration.
The experienced bankruptcy lawyers at Miranda, Magden & Miranda, LLP look for creative solutions to challenging debt problems. Sometimes bankruptcy is not the right choice. Other times, a restructured plan may be better. For those seeking a completely fresh start, Chapter 7 bankruptcy may be the perfect solution.
What can be Discharged in Bankruptcy?
When you file for bankruptcy protection, you are asking the court to wipe out your debts. By doing so, you are also asking the court to tell creditors they will never get paid what they are owed. Therefore, there are specific protections in place to make the process as fair as possible. For these reasons, the law allows some debts to be discharged, while others cannot be. Here are a few debts you can discharge in bankruptcy:
- Credit cards
- Car notes
- Mortgages (exceptions apply)
- Past due utility bills
- Overdue collections
- Charge offs
On the other hand, there are some debts you cannot discharge. The big one many people do not think about is student loans. Federally-backed student loans are not dischargeable in most situations. However, some private loans are.
Getting Help Keeping Your Property
In bankruptcy, it is important to carefully consider what assets are backed by collateral. The debts that are secured by collateral will require some work to make sure you can keep them. Creditors will generally want to sell or liquidate these assets in order to recover as much money as possible. If you need these things for work, you may be able to keep them under certain circumstances.
A California bankruptcy lawyer may be able to help you take steps to preserve your car, your home, and even other items that you need for work purposes. It is important that you work with an attorney who knows how to efficiently move your case forward. Tiny mistakes can end up costing you a lot. Call Miranda, Magden & Miranda, LLP today to discover whether you qualify for a Chapter 7 bankruptcy.