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Photo of attorneys Shelley Slafkes and Bruce Levitt
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What Debt Can I Eliminate in Bankruptcy?

On Behalf of | Dec 5, 2014 | Bankruptcy Basics

When we meet with new clients, we are often surprised at the amount of confusion and misunderstandings that surround the topic of bankruptcy. There has been a lot of discussion lately about what types of debts cannot be discharged in bankruptcy, so this blog will focus on the kinds of debt you can eliminate in a Chapter 7 or Chapter 13 filing. Hopefully by understanding the types of debts you can discharge, you can see how bankruptcy relief could benefit you and your family.

In general terms, filing bankruptcy allows you to eliminate consumer debt. Below are some of the most common types of consumer debt discharged in a personal filing:

· Credit cards

· Medical bills

· Mortgages

· Home equity loans

· Vehicle loans

· Amounts owed for breaking a lease

· Unpaid utility bills

· Cell phone bills

· Debts related to running your business, including guaranty agreements

The above list isn’t exhaustive, but it provides you an idea of how a Chapter 7 or Chapter 13 filing could improve your finances. If a debt is unsecured or there is no collateral pledged as security for the lender, it usually can be discharged. There are a few exceptions to this rule, so it is always important to confer with a knowledgeable bankruptcy lawyer regarding your specific debt.

Don’t believe everything you hear about bankruptcy. If you have questions, let us provide you with answers you can trust. We can review your individual finances and help you understand all of your debt relief options.

We are bankruptcy lawyers who know how to make a difference in your financial situation. We have experience you can rely on and we care about your results. Contact our New Jersey law firm online by filling out the form or by calling 973-323-2953 to schedule a free initial consultation.