Understanding Your Debt Elimination Rights
Most people considering bankruptcy wonder which of their debts can be eliminated if they file for bankruptcy protection. At the Law Offices of James A. Pixton, we are here to help you answer this question.
To learn more, contact us to schedule a free 30-minute consultation with experienced bankruptcy lawyer James A. Pixton. Our offices are conveniently located in Oakland, Alameda and Modesto, California.
Sorting Out Which Debts Are Dischargeable
One of the most powerful tools in bankruptcy is dischargeability: the fact that certain types of debt can be eliminated completely upon approval of a Chapter 7 bankruptcy or completion of a Chapter 13 payment plan.
The good news is that almost all types of debt that cause the average person to consider filing (i.e. medical bills and credit card debt) can be eliminated by the bankruptcy process.
However, Congress has decided that certain types of debt should not, except in unusual circumstances, be dischargeable. These debts include student loans, tax debts that are less than three years old, child support, alimony, criminal fines and damages for injuries caused in a DUI accident.
Even if debt is of a type that is usually dischargeable, it may be exempt from elimination if the creditor can show that you engaged in fraud or dishonest conduct when you incurred it. We know that each bankruptcy case is different, so we can help you determine exactly what debt elimination you are entitled to, based on your unique circumstances.
Exploring Your Options for Secured Debts
Certain debts — such as home mortgages or car loans — are considered to be “secured debts,” as they are secured by a particular piece of property. Secured debts are typically only eliminated in bankruptcy if you are willing to give up the property. If you are not willing to give it up, you will have to continue making payments on it. If you file for Chapter 13 bankruptcy, you can use the Chapter 13 payment plan to catch up on your past due payments.
Contact us to have attorney James A. Pixton review your debts with you and determine which ones are subject to elimination in bankruptcy.
