For those who are eligible for Chapter 7 Bankruptcy, we can discharge our clients’ debts such as credit cards, personal loans, medical bills and back income taxes that are older then 3 years. For those who are only eligible for a Chapter 13 Bankruptcy, we can restructure your debt to consist of one lowered monthly payment and a complete discharge in five years.
Debts that are Usually Reduced or Discharged by Bankruptcy
- Credit Card Debt
- Medical Bills
- Personal Loans
- Civil Judgments
- Utility Bills
- Most other unsecured debt
- Bank income taxes that are more then three years old
If you are filing a Chapter 7 Bankruptcy, those debts are likely to be eliminated. If you are filing a Chapter 13 Bankruptcy, you will have to pay a portion of those debts over a period of three to five years, with the rest being discharged at the end of the Bankruptcy.
Debts that are Usually Not Discharged by Bankruptcy
- Mortgage (can’t be discharged, but can be significantly reduced through modification)
- Car Payments
- Most taxes
- Student Loans
Debts that can Sometimes be Affected by Bankruptcy
- Second Mortgage (can be reduced or eliminated through lien stripping or cram down)
- Car Payment (can be subject to cramming down, or partial discharge)
Debts that are Only Affected by a Chapter 13 Bankruptcy
- debts used to pay nondischargeable tax obligations
- debts incurred in a divorce proceeding (but not alimony or child support)
- debts from a prior bankruptcy where a court denied your discharge
- HOA or condo fees that became due after you filed for Bankruptcy
If you would like more information about bankruptcy and obtaining debt relief, call Florida attorney Albert Goodwin.