What Types of Debts Are Dischargeable in Chapter 7?
Dischargeable Chapter 7 Debts in Detroit, MI
When you file for bankruptcy under Chapter 7, almost all of your debts are dischargeable. In other words, they are not collectible by your creditors after the bankruptcy is complete. These include past due utility bills, medical bills, repossession deficiency balances, past due rent, collection agency accounts, attorney fees, bounced or dishonored checks, personal loans from friends, families and employers, social security overpayments, veterans' assistance loans and overpayments, certain older tax obligations, business debts, in some cases student loans, credit card bills, other similar unsecured consumer debts.
Discharging Debt with Chapter 7 in Detroit
Most of your debts can be discharged or wiped out in a Chapter 7 bankruptcy. Of course, only those debts incurred before the filing date of your bankruptcy petition will be considered for discharge. Also, only those debts listed in your petition will be considered for discharge, as all of your creditors must be given notice of your filing for bankruptcy. Sometimes the most difficult part of filing for bankruptcy is the tedious job of gathering all the pertinent information relating to all of the debts. Once the petition is filed, there is usually only one trip to the courthouse necessary. Typically the entire process from filing a Chapter 7 petition to getting the final discharge of debts from the court takes about 4 - 6 months. The moment your petition is filed, the court grants what is called an "automatic stay" or a stop to all collection efforts by your creditors and stops your obligation to make payments while the case is decided. This automatic stay will give you relief from creditor calls, letters, and lawsuits, on an immediate basis.
We have over 50 years of experience serving as counsel in bankruptcy cases and can help you come to the right decision about which option is best for you. Bankruptcy should be a last resort, as you can only file a Chapter 7 bankruptcy if you have not filed for bankruptcy protection within the past 8 years. We are experienced in helping our clients to finally get relief from debt and will treat you with the utmost respect and care. We will zealously advocate for your rights and we offer alternatives for bankruptcy as well. We are on your side.
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