Wipe Away Your Debts
I cannot overstate what an incredible opportunity you have if you are thinking of filing for bankruptcy. Try to imagine how much accumulated credit card you have accrued over the years, do you have that number? Now try to image what if you could magically wipe away all of that debt forever. This is essentially one of the biggest reasons people file for bankruptcy – to erase their credit card debt.
In a chapter 7 bankruptcy, we can wipe out your unsecured debt. These are all types of debt that are not secured by any property. This usually includes things like credit card debts, medical bills, cable bills, phone bills, and many store credit cards. We literally erase those debts in a chapter 7 bankruptcy.
Secured debts are those debts that are secured by your property. For instance, a mortgage is a type of secured debt that acts as the banks security if you stop paying the loan. Car loans are also usually secured by the car. These types of debts we cannot simply wipe away in a chapter 7 bankruptcy, since they have a security interest in your property. In bankruptcy, you will have the option to keep and pay for these items or to surrender the items and therefore rid yourself of that debt as well.
The laws of secured and unsecured debts can get quite complex so it is important to consult with a bankruptcy attorney about your specific financial situation. If you would like to speak with me, I would be happy to answer all your questions in my FREE over-the-phone consultation.