Eliminating Debts in Mesa
One of the best ways to eliminate our debts is to have them legally discharged. When a debt is discharged, you are no longer responsible for it. The discharging of debts occurs mostly in a Chapter 7 bankruptcy, but can also take place in a Chapter 13 bankruptcy. Chapter 7 is the liquidation of non-exempt assets to pay creditors. Once the proceeds from the liquidation have been distributed, any remaining debts will be discharged. In a Chapter 13 bankruptcy, you will be allowed to restructure your payment plans to creditors. Most reorganization plans conclude within 3 to 5 years. After the payment program has been completed, the court can order any remaining debts discharged.
The types of debts that typically get discharged in a bankruptcy are unsecured, such as credit card debts.
There are also certain types of debts that cannot be discharged, such as:
- Educational loans
- Child support
- Most unpaid taxes
If you are considering filing a bankruptcy petition, understanding which of your debts can be discharged is important, and can help you decide whether or not bankruptcy is your best option. A Mesa bankruptcy attorney from Dodge & Vega, PLC can explain the entire bankruptcy process in detail so you know exactly what will happen when you submit your petition. We can also give you an honest assessment of your financial condition and help you decide whether or not bankruptcy is right for you.
Debts Which Not Be Discharged Through Your Bankruptcy
- Guaranteed Educational Loans.
- Income taxes less than three (3) years old.
- Income taxes over three years old and tax return not filed more than 2 years ago.
- Income taxes not assessed at least 240 days.
- Payroll taxes, sales taxes, property taxes.
- Debt incurred to pay a nondischargeable federal tax [BC 523(a)(14)].
- Willful evasion of tax or fraudulent tax return (“tax protester”).
- Tax or judgment claims secured by lien on property owned by debtor
- Spousal or child support, or ex-spouses attorney fees for obtaining support.
- Debts incurred by fraud or lying with the intent to deceive.
- Criminal fines or restitution or drunken driving injury claims.
- Fine or penalty owed to governmental unit.
- Damages arising from willful injury to person or property.
- Professional Malpractice under extreme circumstances.
- Secured Debts where client wishes to retain the collateral, such as vehicles, home, etc. (May be discharged, but payment must be made to retain the property).
- Co-signed debts where debtor does not want creditor to go after the co-signor.
- Debts not included on the bankruptcy schedules.
Trying to resolve debt problems on your own can be time consuming and extremely difficult. Retaining the services of an attorney who can protect your rights and represent your interests often results in a better outcome to your financial situation. Our firm has successfully guided many clients through the bankruptcy process, and can explain how it works. We can also assist you with other debt remedies such as loan modification, debt settlement and debt consolidation.
Contact a bankruptcy attorney for insight into the bankruptcy process and the discharging of debts.