Dischargeable and Non-Dischargeable Debts
For many people in serious debt, one of the more attractive aspects of bankruptcy is the possibility of having their debts discharged. Having a debt discharged means that the creditor will no longer be able to take any actions against you in pursuit of the amount owed. In other words, you will no longer be legally obligated to repay that particular creditor.
If you are considering bankruptcy, it is important to have realistic expectations about the discharging of your debts. It is not an automatic solution to your financial problems; in fact, some kinds of debt are not eligible to be discharged at all. To learn about dischargeable debts and your financial prospects, call an Arizona bankruptcy lawyer from the Harmon Law Office, LLC at 480-829-0494.
Dischargeable Debts
A debt may be eligible for discharge if it is unsecured – in other words, if you did not sign a statement granting the debtor the right to seize property from you if you fail to repay it. Some examples of debts that are often dischargeable include:
- Credit card bills
- Personal loans
- Remaining debt after vehicle repossession
- Business-related debts
- Leases
Our Arizona dischargeable debt attorneys can help you file for debt discharges within the proper time frame; otherwise, they may not be granted.
Non-Dischargeable Debts
Debts that cannot be discharged in a bankruptcy are called secured debts. These creditors have the contractual or legal right to seize property from you to repay debts. Even after filing for bankruptcy, you will typically be responsible for repaying debts like:
- Child support or alimony
- Student loans
- Taxes due within the past three years
- Criminal fines
- Fraudulent debts
Before you file for bankruptcy, you need a clear understanding of what your financial responsibilities will be.
Contact Us
The Arizona bankruptcy lawyers of the Harmon Law Office are happy to help people explore the possible benefits of filing for bankruptcy. Contact us at 480-829-0494.