Living in debt is not easy. Falling behind on payments, receiving countless calls from debt collectors, and struggling to make ends meet can take a toll on your mental and physical health. Fortunately, there are ways to discharge your debts so you can wipe your financial slate clean.
Don't let debt destroy your life-seek financial relief with the help of the discharge debts attorneys at Hammond Law Firm. We will guide you through the process of discharging your debts to protect your financial future.
The term "debt discharge" refers to the elimination of debt. If a debt is discharged, you are no longer required to pay it, and the creditor is no longer allowed to contact you or take legal action against you to collect it.
Discharging your debts is one of the main benefits of filing for bankruptcy. The rules regarding debt discharge vary depending on the type of bankruptcy.
If you file for Chapter 7 bankruptcy, many of your assets are sold and the proceeds are given to your creditors to repay your debts. But, the vast majority of debtors will not have assets that are valuable enough to cover their debts. This won't matter. Most of your debts are discharged at the end of your Chapter 7 bankruptcy case regardless of whether or not you were able to pay the creditors by selling your assets.
Chapter 13 bankruptcy is known as the repayment plan bankruptcy. If you file for Chapter 13 bankruptcy, you are required to create and comply with the terms of a repayment plan. This means you will need to make payments to your creditors over the course of three to five years. Once the plan is complete, the remaining balances on most of your debts will be discharged.
Debts are classified as either dischargeable or non-dischargeable. Dischargeable debts are those that can be eliminated by filing for bankruptcy, whereas non-dischargeable debts cannot be eliminated by filing for bankruptcy.
Some examples of dischargeable debts include:
Each case is unique, but in general, you will be able to discharge more debts by filing Chapter 13 bankruptcy. Some of the debts that are dischargeable in Chapter 13 bankruptcy proceedings but not in Chapter 7 bankruptcy proceedings include:
If you are interested in discharging your debts, contact the skilled bankruptcy attorneys at Hammond Law Firm as soon as possible. Tell us more about your finances so we can determine the most effective way to discharge your debts. With our help, you can retake control of your finances and obtain the fresh financial start you need. To schedule a free consultation, call 405-216-0007 or submit your information via the form on this website.