If you’re like most people struggling to pay off loads of debt, you’ve probably considered whether or not filing for bankruptcy is a good option for you. Depending on how much you know about the bankruptcy process, you may also have wondered what types of debt can be eliminated through bankruptcy.
The truth is that while bankruptcy is an effective debt relief option, it will not eliminate all of your debt. In fact, if you file for Chapter 13 bankruptcy, none of your debts will be eliminated. Instead, your debt will be reorganized and consolidated. You then have three to five years to pay off your debt under the terms of the repayment plan approved by the bankruptcy court.
Chapter 7 is the form of bankruptcy that eliminates a person’s debt. However, if you are approved for Chapter 7, you should be warned that not all debts can be discharged. Types of debts that cannot be discharged through bankruptcy include:
- Tax debt
- Child support debt
- Spousal support debt
- Debts from court-ordered fines, fees, or penalties
- Debt from personal injury damages
- Most student loan debt
At the Malaise Law Firm, we are committed to helping clients throughout the Fort Worth area take advantage of effective debt relief solutions so they can move forward with their lives. By contacting our office, you can schedule a consultation with an experienced Fort Worth bankruptcy attorney who will sit down with you to review your financial situation to determine if filing for bankruptcy is the best way to go about eliminating your debt. If there is another debt relief solution that would be more effective in reducing your debt load, you can trust the Malaise Law Firm to provide with the legal guidance and counsel needed to pursue that option.