Types of Debt Eliminated in Bankruptcy

Personalized Counsel from a Tacoma Bankruptcy Lawyer

Accumulated debt and threats of foreclosure can make bankruptcy look like an appealing option, particularly when you feel like there is nowhere left to turn. It is important to note, however, that bankruptcy doesn't eliminate all debt. Whether you file for Chapter 7 or Chapter 13, you should know what you'll be left with after it's all said and done.

For more than 30 years, David Yando has been serving the community as a skilled Tacoma bankruptcy lawyer. He understands the complexities involved and can address your concerns while working to give you a better financial future.

What debt can Chapter 7 & Chapter 13 eliminate?

One of the biggest forms of debt taken care of in both Chapter 7 and Chapter 13 bankruptcy is credit card debt. A credit card's remaining balance is considered unsecured debt, which means that a creditor cannot repossess your property if you fail to pay.

Along with credit card debt, Chapter 7 also discharges many other forms of debt, including:

  • Medical bills
  • Personal loans
  • Utility bills
  • Business debts
  • Car accident claims

Debt elimination under Chapter 13 bankruptcy is relegated to nonpriority unsecured debts.

You may be able to discharge any of the following:

  • Credit card debt
  • Medical bills
  • Personal loans
  • Breach of contract or negligence debts

Due to time constraints and legal requirements, your debt may fall into one of the above categories but fail to meet certain qualifications. Our team can assess your circumstances and help you understand what your future will shape up to be. Countless individuals have trusted our Tacoma bankruptcy lawyer for their financial freedom.

You should not have to live with fear over the state of your finances. Don't wait to pursue debt relief – contact Washington Fresh Start today!

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