Helping individuals obtain financial freedom through bankruptcy in
Lake, Porter, LaPorte, St. Joseph, Newton, Jasper,
Elkhart, Tippecanoe & Surrounding Counties.
Offering Free and Convenient
Telephone Consultations
What Debts Are Forgiven Through Bankruptcy
What Debts Are Forgiven Through Bankruptcy?
When you file for bankruptcy, there are certain debts that you can completely discharge. That means you will not have to ever pay those debts off. It also means that your creditors can no longer bother you about collecting on those debts. However, in order for you to be able to eliminate a debt it must be a dischargeable debt. In other words, not all kinds of debt can be discharged when you file for bankruptcy. At Whitten & Whitten, we will help you understand which debts can and can’t be discharged.
Dischargeable Debts In Bankruptcy
The good news is that there are several common types of debt that are usually considered dischargeable when you file for bankruptcy.
- Typical dischargeable debts include:
- Medical bills
- Credit card bills
- Repossessed vehicle deficiencies
- Foreclosed homes deficiencies
- Judgments
All of these types of debts can be discharged, which means you will not be responsible for paying them off when you file for bankruptcy. It also means your creditors cannot continue trying to collect on them.
Non-Dischargeable Debts In Bankruptcy
Certain debts are still your responsibility to pay, even if you file for bankruptcy. These are known as non-dischargeable debts, and you will be obligated to pay them off despite choosing bankruptcy.
- Student loans
- Child support and/or spousal support
- The majority of tax debts
- Debt that is not listed by the debtor
- Any criminal fines or restitution
Secured Debt With
Chapter 7 & Chapter 13
Meanwhile, if you have any secured debt, like a loan for a vehicle, there are two options. If you choose Chapter 13 Bankruptcy, you will need to create a payment plan in order to pay off the balance owed or even just the fair market value of the vehicle. In either case, you only have to pay 5.25% interest on the vehicle debt. If you choose Chapter 7 Bankruptcy, you can simply return the vehicle to your lender and be free of making any more payments. You could also keep the car by making one lump-sum payment to the lender for the fair market value of the vehicle in situations where the amount owed is substantially more than what the vehicle is worth.
Contact Us for More Help With Bankruptcy
At Whitten & Whitten, we can help you determine which debt you can target in bankruptcy and which type of bankruptcy would benefit you the most. Every situation is different, and we know that each person has his or her own unique set of circumstances. We carefully look at each case we deal with and determine what path is best for that particular case. You can trust our experienced bankruptcy team with your bankruptcy process. Please contact us at your earliest convenience to set up a meeting to discuss your case more in-depth. Call us today at 219-756-0555, or click here to contact us online.
What Our Clients Say!
These guys really took me out of a tough time. Really down to earth and made me feel at easy. Would recommend
Mark H.
googleI would suggest Whitten & Whitten and the whole office. They helped me and were so helpful and friendly. Thank you for getting me back on track.
Patti B.
Get Started Today.
Contact Us
If you are ready to speak to an attorney, provide the information
below for a free initial consultation.
We are a debt relief agency. We help people file for bankruptcy relief under the bankruptcy code. This information is designed for general information only. The information presented should not be construed to be formal legal advice nor the formation of a lawyer/client relationship. Past results and testimonials are not a guarantee, warranty, or prediction of the outcome of your case, and should not be construed as such. Past results cannot guarantee future performance. Any result in a single case is not meant to create an expectation of similar results in future matters because each case involves many different factors, therefore, results will differ on a case-by-case basis. By providing certain contact information herein, you are expressly authorizing the recipient of this message to contact you via the methods of communication provided.
NUVEW | Copyright 2024 All Rights Reserved | Privacy Statement | Accessibility Notice