If you’re beginning to consider bankruptcy, you may have a lot of questions such as whether all your debts can even be included. The law can be confusing when you’re unfamiliar with it, and bankruptcy is often misunderstood. When clients meet with me for the first time to discuss their debts and options, I help them navigate the decision process. A part of what determines if bankruptcy is the right decision as well as which type is assessing the debts carried. While most debts can be discharged, there are some exceptions.


Chapter 13

If you’re looking to pursue Chapter 13 Bankruptcy, known as reorganization, all of your debts can be included in your filing. These debts are then paid through a repayment plan which is also submitted with your filing to the court. The plan will be set out to be paid over the course of 3-5 years, at the end of which any remaining debts are discharged. This allows you to maintain property such as a vehicle or house by maintaining current payments on the debts. If you’re looking to stop interest from building on a tax debt or prevent foreclosure, Chapter 13 is a good choice to catch up on payments.


Chapter 7

While Chapter 7 is a slightly more simple type of bankruptcy, it includes most but not all debts. This option can be the right choice if you are unable to adhere to a payment plan and simply want to eliminate financial burdens without repaying debts. Debts that can be included in a Chapter 7 filing are any types that are unsecured, in other words, debts without collateral behind them. If these debts are the type you carry Chapter 7 may be for you! This could be a credit card, a personal loan, medical bills, utility bills, private student loans, or business loans. Debts such as child support, alimony, student loans, and tax debts, as well as any debts related to fraud are not included in Chapter 7.


Although there are many nuances to filing bankruptcy, a seasoned expert can help you navigate them. It can seem to be a daunting process, but that’s not so, and with the help of a bankruptcy attorney such as myself, you could be on your way to financial freedom. Bankruptcy is a part of the law that’s meant to serve you by helping better your financial situation. Rest assured I will help you weigh your options and determine the best course of action during an initial consultation, schedule one with me today!