Discharging Debt In Bankruptcy

"What types of debts can be discharged in bankruptcy?" This is one of the most common questions asked by people we discuss debt relief with every day. And it's a very good question!

Unsecured debt, as listed below, can be discharged in Chapter 7 bankruptcy or modified under Chapter 13. Secured debt cannot be completely eliminated, but it can often be modified or reduced, depending on the type and value of the secured assets. Tax debts can be eliminated or modified. The proper use of bankruptcy to discharge your unsecured debt allows you and your family the disposable income necessary to repay more important debt obligations, such as your mortgage, rent and car payment. It also allows you to reallocate limited financial resources to rebuild your financial future with the stability necessary for long-term financial security.

Unsecured, or dischargeable debt, is any of the following:

  • Credit card debt
  • Divorce debt (properly utilized, Chapter 13 can sometimes be used to alter unpayable divorce decrees)
  • Foreclosure deficiencies
  • Tax debt (if old enough under several factors)
  • Medical debt
  • Gambling debt
  • Co-signed and joint debts
  • Repossession deficiencies
  • Pay day loan debt
  • Personal loans
  • Business debt
  • Personal guarantees

With the assistance and knowledge of our debt relief lawyers at The Law Offices of Neil Crane, LLC, you can benefit from the opportunities available under the law to discharge your burdensome debt load with a well-planned, well-informed strategy that is the best possible resolution in your particular situation. Discharging debt through Chapter 7 bankruptcy will allow you to completely eliminate these debts and gain a financial fresh start.

Qualifying for Chapter 7 Debt Discharge

Under the new bankruptcy law, people seeking relief under Chapter 7 now must qualify to enjoy the total benefit of discharged debt. Our Chapter 7 bankruptcy experience will assure that you get the best possible chance to qualify for full Chapter 7 relief under the new requirements of the bankruptcy law in order to provide you and your family with a complete discharge of all debt under Chapter 7.

To maximize your chances for total debt relief under Chapter 7, you need to rely on counsel that is fully specialized and knowledgeable in the intricacies of the "Median Income" and "Means Testing Requirements of the new Chapter 7 Bankruptcy Law.. Through hard work and the assistance of good clients, we have navigated through the new income requirements and successfully completed more than 3,000 Connecticut Chapter 7 cases since the new law began. At the Law Offices of Neil Crane, we've used our hard work and dedication to become the largest providers of Chapter 7 bankruptcy relief in Connecticut.

Contact us today to schedule a free initial consultation. We will discuss your concerns and your full financial situation. Our attorneys are dedicated to serving clients at offices across the state, including Hamden, Bridgeport, Waterbury, Rocky Hill and Ridgefield.

Freedom From Unsecured Debt and Other Dischargeable Debt

Unsecured Debt vs. Secured Debt

A secured loan, usually for a vehicle or property (e.g. mortgage), is a loan in which collateral (the car or the house) is pledged to secure the loan. If a borrower defaults or somehow violates a contractual obligation under these secured loans, the lender may repossess the asset, unless the borrower has bankruptcy protection. By contrast, an unsecured loan is not connected to any asset and can be eliminated through a properly prepared and filed Chapter 7 bankruptcy.

If you continue to struggle and find yourself falling behind on minimum payments on high-interest credit cards,, you need to seek the advice of a professional who knows all the avenues and legal options that provide success for individuals, families and small businesses throughout Connecticut.

We address and bring suit against improper, illegal and harassing conduct by creditors and collectors who commit unfair debt collection practices. If you are the victim of these aggressive practices, keep good notes, and let us help you fight back!

Contact Our Connecticut Discharging Debt Attorneys

Debt relief is not a one-size-fits-all proposition. We will help you determine your most appropriate path to freedom from crushing debt. Your initial consultation is free. Call us today at 203-230-2233 or toll free at 888-249-3027, or complete our online contact form. When you call us, you will always speak to an attorney. Consult with our experienced consumer attorneys today.

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We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.