According to data recently released by the United States Federal Reserve, Americans currently owe over $3 trillion in various types of debt. These debts range from mortgages to auto loans to credit cards, and much more, but all of the debts have one thing in common—the payments put financial pressure on American households. While some individuals have never missed a credit payment, others are in an endless cycle of struggle to keep up with their monthly payments, sometimes using other credit to make payments and never truly getting ahead. Fortunately for these individuals, Chapter 7 bankruptcy may provide financial relief.
One of the first questions individuals may have regarding Chapter 7 bankruptcy is which kinds of debt may be discharged by a bankruptcy court. The following types of debt may generally be discharged:
The following are examples of debts that are non-dischargeable under the bankruptcy code:
For individuals who have many different kinds of debts, Chapter 7 bankruptcy may not always cover every debt they have. However, Chapter 7 can still discharge a portion of their debt, which relieves some of the pressure and opens up funds to address the remaining debts. Additionally, other types of bankruptcy may be helpful in handling debts that are non-dischargeable under Chapter 7. For these reasons, you should never discount bankruptcy as a possible option simply because you may have some non-dischargeable debts.
If you are overwhelmed by debt, an experienced New York bankruptcy attorney can evaluate your situation and determine whether filing for Chapter 7 bankruptcy is the right option for you. At The Law Office of Ronald D. Weiss, P.C., we offer free consultations and are committed to helping New Yorkers get back on their feet. Please email our office or call at 631-271-3737 for help today.
Law Office of Ronald D. Weiss, P.C. | Long Island Bankruptcy Attorney
734 Walt Whitman Rd #203 ,
Melville, NY 11747
Phone: (631) 271-3737