Understanding Bankruptcy's Power to Give You Debt Relief
The core benefit of bankruptcy is the fact that it can be used to discharge certain types of debts, eliminating them permanently so you never have to worry about paying them again.
At the Tucson law firm of Trezza & Associates, we have helped many clients obtain a discharge of their debts and make fresh starts by filing bankruptcy. Contact us to schedule a free consultation with experienced Arizona bankruptcy lawyer Stephen Trezza.
Getting Your Debts Permanently Eliminated
There is a lot of confusion about what it means to have your debts discharged. You may have heard this term without anyone explaining what it means. You may be wondering whether you can still be required to pay debts that have been discharged. The basic answer is no.
Once the bankruptcy court discharges your debts, you do not have to pay them. You no longer owe your creditors money, and they cannot do anything to try to get you to pay.
Most types of unsecured debt — including credit card debt, medical bills, payday loans and deficiency balances — can be discharged. Secured debt — such as mortgages and auto loans — cannot be discharged if you want to keep the asset that secures the debt.
Anticipating When You Can Expect Your Discharge
Filing bankruptcy gives you immediate relief from creditor harassment, but discharge does not come until the end of the process, when you exit the supervision of the bankruptcy court.
- In Chapter 7, you will generally get your discharge in a few months. The bankruptcy trustee will take any assets you have that are not exempt and use them to partially repay your creditors. If all your assets are exempt, you will not lose anything.
- In Chapter 13, you will get your discharge after you successfully complete the three- to five-year payment plan. Any remaining amount you would otherwise owe on your unsecured debts will be discharged.
To learn more about what it takes to get a discharge and what we can do to guide you through the bankruptcy process, contact us to talk to attorney Stephen Trezza.
