Bankruptcy Attorney in Los Angeles
Discharging Your Debt
The purpose of bankruptcy is to give a debtor a fresh financial start. This is accomplished by the discharge of his or her debt. When a debt is “discharged”, this means that the debtor is no longer liable for paying it. The creditor may take no further action against the debtor for this debt because it has been formally discharged through bankruptcy. In a
Chapter 7 bankruptcy, all eligible, unsecured debt is discharged after the liquidation of the debtor’s non-exempt assets. In a
Chapter 13 bankruptcy, all eligible debt is discharged after the completion of a successful repayment plan that may last for 3 to 5 years. In either a Chapter 7 or Chapter 13 bankruptcy, the end result is a debtor who is free from all debt that could have been addressed through bankruptcy.
Interested in eliminating debt? A Los Angeles bankruptcy attorney can assist you in filing for bankruptcy and seeking the discharge of all eligible debt. We welcome you to contact our law offices at your earliest convenience to discuss your options in this regard.
Eliminating Debt through Bankruptcy in Los Angeles
Imagine finally being free from overwhelming debt. Filing for bankruptcy not only places an automatic stay on all collection efforts against you, but it also offers you the opportunity to eliminate eligible debt. This may include unsecured debt such as cell phone bills, credit card bills, utilities, personal loans and medical bills. Some debt is not affected by bankruptcy. This includes secured debt, such as certain types of taxes, child support, spousal support and student loans. These debts are typically not eligible to be discharged through bankruptcy, although some tax debt may addressed depending on the type and age of the tax. It is also possible to include some secured debt in a Chapter 13 repayment plan, but this will vary depending on the case.