Your local Atlanta bankruptcy attorneys talk about what a bankruptcy can and can’t do for you. While bankruptcy eliminates most debts, it doesn’t eliminate all types of debt. If you are considering filing, make sure you know which debts will be erased and which ones you will continue to be responsible for.
For the most part, you can get rid of debts such as credit card debt through Chapter 7 and Chapter 13. However you will not be able to eliminate other types of debt, including child support, alimony, most tax debts, student loans, and secured debts. In some situations, Chapter 13 can help, where as Chapter 7 cannot.
Here we have some of the things a bankruptcy can do for you:
- Expunge most Credit Card debts and other unsecured debts. Unsecured debt is defined by the creditor not having any lien on property or items to repossess if you fail to pay the debt.
- Halt harassment and phone calls from creditors. Most of the time a bankruptcy will eliminate harassing phone calls and attempts to collect from debtors. Especially when filing for a Chapter 13, it is actually forbidden for creditors to contact you personally.
- Wipe out certain types of liens. A lien is defined as the creditors right to repossess property if you fail to repay your debts. While it is very rare, you may be able to expunge liens. Such as when filing for a Chapter 13 where you are agreeing to pay your debts over a set amount of time.
Here we have listed some of the things that a bankruptcy can’t do for you:
- Prevent a secured creditor from repossessing property. If you do not qualify for a Chapter 13, or most of your debts are being wiped out it cannot stop a creditor from repossessing properties if you are not paying the debt through a payment program.
- Eliminate certain debts. Debts like child support, alimony, tax debts, or student loans often times cannot be eliminated. You will still be responsible for these debts regardless of what chapter you file under.
While a bankruptcy may not be able to eliminated debt, and should always be carefully considered before filing, it may be your only option. It is always recommended to hire a great attorney that specializes in the chapter that you’re filing under. Call the attorneys at C. Golden and Fleming to set up a consultation today. At C.Golden and Associates they have the kind of caring and patient attorneys that you will want on your side.