Understanding Debt Discharge And Bankruptcy
One question that people have when they are considering filing for bankruptcy is “Will bankruptcy eliminate all of my debt?” The answer, of course, depends on the specific situation and the type of bankruptcy filed.
At the law firm of Marrs & Terry, PLLC, our lawyers will review your situation and provide an answer. Having helped thousands of clients like you throughout Michigan, we know how to provide personalized and efficient guidance. We will guide you toward the type of bankruptcy that makes the most sense to you and we will tell you exactly what debt, if any, might be left over if the process is complete. Contact our law firm online or call 734-663-0555
Secured Debt Vs. Unsecured Debt: How Do They Work?
Different types of debt are treated differently in bankruptcy. For example, secured debt may be more difficult to deal with. If you want to keep the item that secures it, such as your home or your car, the debt cannot be discharged. If you want to surrender the item, the debt can be discharged. Almost all unsecured debt can be easily eliminated in bankruptcy.
Not all unsecured debt is treated equally, however. While credit card debt is typically not a problem to discharge, student loan debt can rarely be discharged. We will closely and thoroughly examine your debt, guiding you toward the best possible outcome.
When Does Debt Discharge Occur?
Most of our clients come to us after having struggled with debt for a significant period of time. They often want to know not only whether they can discharge their debt, but how soon they can get free of what they owe. This answer depends on the type of bankruptcy filed.
In Chapter 7, debt discharge can occur within a matter of months. Because Chapter 13 involves a debt repayment plan, discharge does not occur until the plan is finished, which is typically three to five years.
Contact Us Today To Get Started
If you would like to learn more about how soon and how much of your debt you can get rid of through bankruptcy, contact us online or call 734-663-0555 to discuss your situation with our experienced Ann Arbor and Jackson debt discharge attorneys. We bring more than 18 years of experience to every case and we offer in-home appointments upon request.
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.