When it comes to choosing bankruptcy for your financial needs, there are two legal terms that apply: Dischargeable and Non-Dischargeable Debts.
Under bankruptcy law, certain debts may be discharged, or completely erased. However, other debts are considered as non-dischargeable.
Therefore, it’s important that the bankruptcy you choose is tailored to your specific needs.
There are several types of bankruptcy chapters: Chapter 7, Chapter 11, Chapter 12, and Chapter 13.
However, no matter what type of bankruptcy you choose, certain debts are inherently non-dischargeable and they will not be eliminated. Instead, you will create a payment plan for those debts that works both for you and your creditors. And, there are many laws, rules, and regulations that cover bankruptcy.
A debt may be discharged, but if a lien was applied, a creditor may attempt to collect payment through the lien.
Because of the depth of the rules that govern bankruptcy, you should always hire a bankruptcy attorney to ensure that you’ve covered all options and have the most comprehensive protection from creditors. An attorney will be well aware of any loopholes that creditors may be able to use, even after the bankruptcy to receive collections.
By using an attorney you can rest assured that you have chosen the best options for your financial needs.