Most households, whether a single person or married couple, have a variety of different debts and sometimes struggle to make the payments. If you’re in need of debt relief, contact our experienced Phoenix bankruptcy attorneys.
Dischargeable Debts
A Chapter 7 bankruptcy isn’t for everybody, which it is why it is important you contact a Phoenix bankruptcy lawyer for a free consultation. A Chapter 7 bankruptcy, with the help of an experienced Phoenix bankruptcy attorney, can discharge the following unsecured debts:
- Credit Card Debt – Often credit card companies raise your interest rate for just a single late payment, which then creates an additional burden to come up with the extra money. When this happens, it’s easy to fall behind on payments. In the event that you find yourself unemployed or underemployed, you might, unfortunately, rely on your credit cards for everyday living expenses such as: rent, car payment, phone bills, etc. Interest payments pile up and late fees can be excruciating. If your minimum payments are not making a dent in your credit card debt, it is time to contact a Phoenix bankruptcy lawyer to explore your options.
- Medical Debt – Medical debt is unavoidable. Taking care of your health should always be number one priority on your list. Medical debt is one of the biggest reasons a single individual or a family files for bankruptcy. Even if an individual has insurance, sometimes it may not be possible to completely cover treating serious conditions which could lead to catastrophic medical debt.
- Personal Loans – Individuals often turn to personal loans as a way to pay off debts. Although it might take care of some, if not all, sometimes coming up with the money to pay off that personal loan can be difficult.
- Title Loans – Title loans are more of a traditional secured loan. The lender will keep your title as collateral until you have paid off your loan. People go this route because of the need for quick cash to pay off other debts or personal reasons. Interest rates on this type of loan may make it difficult to pay off timely. Title loans can be discharged in bankruptcy as long as you are willing to surrender your vehicle along with the title loan and the title loan isn’t attached to any current vehicle you operate.
- Payday Loans – These loans are used in a form of “advanced pay” in order to be able to pay of personal debts or expenses. Usually, the lender will lend you an amount of money at a high interest rate with the agreement that it gets paid by your next paycheck.
- Registration Loans – Registration loans are a cash loan using your car that you are still making payments on as collateral. These are fast and easy solutions for quick cash. Again, with high interest rates, these can be difficult to payback.
- Car Repossession – Whether you might’ve had your vehicle repossessed or you voluntarily turned it in because you simply couldn’t keep up with the payments, you still are liable for the debt. These finance companies for the most part become an “aggressive” creditor by serving you with a lawsuit to appear in court and pursuing wage garnishment. Deficiency balances are dischargeable.
- Most Items in Collections – Anybody who has bills in collections understands how stressful the daily harassment calls can be. You probably spend most of your day avoiding calls because you know where it’s coming from. Filing bankruptcy is the easiest way of ending harassment from these creditors.
- Most Judgments – Generally, most judgments are dischargeable through a Chapter 7 bankruptcy. However, if you’ve received a judgment from an insurance company for an auto accident that you caused while drinking under the influence, that cannot be discharged. Similarly, criminal restitution is not eligible for discharge.
- Most Wage Garnishments -I f a creditor obtains a wage garnishment against you, it’s likely making life more difficult. If you’re being garnished, a creditor can only take up to 25% of your wages. Filing bankruptcy, with the help of a Phoenix bankruptcy lawyer, is the best way of stopping the garnishment.
Non-Dischargeable Debts
The following debts are generally not eligible for discharge under a Chapter 7 bankruptcy:
- Most state and federal taxes
- Child support and alimony
- Medical expenses incurred by other due to accidents caused while under the influence
- HOA fees
- Criminal fines, penalties and restitution
- Penalties owed to the government
- Attorney fees related to child support or alimony
If you have Bankruptcy questions, call the Lerner and Rowe Law Group at 602-667-7777 or contact us online to schedule a free consultation. The bankruptcy lawyers at the Lerner and Rowe Law Group have been helping clients all across the valley get a fresh start. Often, people delay seeking help for their financial situation. Don’t put it off any longer. Contact us today to see if filing bankruptcy is right for you. We offer affordable payment plans.