Which Debts Can I Erase Through Bankruptcy?
When most people think of bankruptcy, they think of a process that allows someone to cancel existing debts and start again, debt-free. In many cases, this is true. The bankruptcy process in Virginia can offer many options for erasing financial obligations and finding hope again.
I am lawyer Wilson C. Pasley, and I help individuals and families in Roanoke and across the surrounding areas take advantage of their legal debt relief options. Let me help you, too.
Six Common Debts That Can Be Discharged
If you file Chapter 7 bankruptcy, you can usually discharge or erase most unsecured debts. Here are six of the most common:
- Credit card debt
- Medical debt
- Deficiencies on houses that were foreclosed on
- Deficiencies on vehicles that were repossessed
- Cash advance loans/payday loans
Three Common Debts That Typically Can’t Be Discharged
Except on rare occasions, certain debts can’t be erased through bankruptcy. Three of the most common are:
- Federal and state tax debt
- Student loans
- Child support and spousal support arrears
It’s important to note that even if you can’t discharge a certain debt, such as a college loan, filing bankruptcy may still be beneficial. By erasing all the debts that you can, such as medical bills and credit card bills, you may be able to fit the student loan payments into your budget again.
Talk With Me, Attorney Wilson C. Pasley, One On One Today
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.