Bankruptcy Lawyers Helping You Find Financial Relief
For many people, financial difficulties arise from any number of different reasons – major medical expenses not covered by insurance, divorce, the loss of a job, or even the death of the family’s primary breadwinner – and these can result in an inability to pay the bills. Often, credit card bills mount as the cards are used to pay the other bills that there just isn’t enough income to cover. Frequently, the situation continues to grow worse, and the options dwindle. Many people do not see a way to manage their debts. If you find yourself in such a situation, you should consult with a Hollister bankruptcy lawyer to find out how Chapter 7 bankruptcy might help get you out of your financial crisis.
What Chapter 7 Bankruptcy Can And Cannot Do
If you qualify for Chapter 7, this form of bankruptcy can eliminate most of your debts. Even if you have legal judgments against you, Chapter 7 can eliminate that debt in most situations. At the end of this type of bankruptcy case, your debts can be discharged, which means you no longer are legally obligated to repay the money. This includes debts or judgments for such things as:
- Medical bills
- Credit card debts
- Unsecured loans
- Loans from friends and family
- Past due rent and utilities
Clearing up these debts can help you keep up on payments for secured debts – such as auto loans or mortgages – that are not dischargeable in Chapter 7.
What Debts Cannot Be Discharged in Chapter 7?
While most debts are discharged in Chapter 7 bankruptcy, some are not. For instance, you cannot decide you are going to declare bankruptcy soon and then run up as much debt as possible on credit cards or by other means. You can’t get rid of secured loans, such as the loans on your car or your home. You usually can reaffirm those debts and keep that property, so long as you continue to make timely payments. Other debts that cannot be discharged in Chapter 7 bankruptcy include:
- Most back taxes of any kind, including income and Social Security taxes
- Alimony and child support
- In general, student loans, although it sometimes is possible to discharge these debts
- Debts that result from fraud, theft, or various other criminal acts
- Debt that is not in your name, such as the debts of a child or former spouse
Chapter 7 is not right for everyone, depending on the type of debt you have and other factors, such as your income and property. Our lawyers can evaluate whether Chapter 7 bankruptcy is right for you and help you through the process.
If You Are Considering Bankruptcy, Contact Our Hollister Bankruptcy Lawyers
If you find yourself in an impossible financial situation and are considering bankruptcy, you should talk to a Hollister Chapter 7 bankruptcy attorney. Contact the attorneys of Miranda, Magden & Miranda, LLP. They can provide the assistance that you need to deal with your problem.