Dischargeable Debts In Bankruptcy: Elmore County

Financial challenges can feel overwhelming, but bankruptcy offers a legal path to relief. We help clients in Elmore County navigate this process to achieve a fresh start. Understanding bankruptcy options empowers you to make informed decisions. As Elmore County bankruptcy attorneys, we guide you through each step.

Since 1997, our team has dedicatedly served Elmore County. Our deep roots in the community and extensive knowledge of local laws set us apart. We aim to build long-lasting client relationships, and assist with bankruptcy and other legal needs such as wills or divorces. The Law Office of Jeffrey J. Courtney, LLC, is an Elmore County bankruptcy law firm with lawyers committed to your long-term success.

What Does It Mean To “Discharge Debt” In Bankruptcy?

Discharging debt in bankruptcy means eliminating your legal obligation to repay certain debts. Understanding discharge helps you plan for financial recovery. To have your debts discharged means:

Creditors cannot pursue collection after a discharge.
Discharge applies only to debts included in the bankruptcy filing.
Discharge releases you from personal liability for specific debts.

To help you do this, we review your debt portfolio to identify dischargeable debts and assess your credit report, where a Chapter 7 discharge remains for 10 years and a Chapter 13 for seven years. To rebuild credit, we recommend obtaining a secured credit card with a $500 deposit and paying utility bills on time to improve your score within one to two years. We also file motions to ensure creditors report discharged debts as closed on your credit report.

This process reduces debt and enables new credit opportunities for financial recovery.

Dischargeable Debts: Debts That Can Be Discharged

As Elmore County debt relief attorneys, we clarify which debts you can eliminate. Knowing dischargeable debts helps you assess bankruptcy’s benefits. Credit card balances. The following are examples of dischargeable debts:

Medical bills
Personal loans
Utility bills
Some tax debts, if they meet specific criteria

These debts, when discharged, reduce your financial burden significantly.

To help you with this process, we review your debts to identify those eligible for discharge. For example, credit card debts over $10,000 from two years ago qualify, but cash advances taken within 90 days of filing may not. Tax debts over three years old, meeting IRS criteria like timely filing, are also dischargeable. We review your debt timeline and creditor agreements to include all eligible debts in your filing and maximize your relief.

Nondischargeable Debts: Debts That Can’t Be Discharged

Some debts remain after bankruptcy, and we help clients understand these obligations. As Elmore County bankruptcy lawyers, we help you identify nondischargeable debts to set clear expectations. Some examples of these debts include:

Student loans (unless you prove undue hardship)
Child support and alimony
Recent tax debts
Debts from fraud or willful injury

Courts deem debts nondischargeable if tied to fraud, requiring evidence like false financial statements or willful injury, such as damages from intentional acts. For student loans, we file hardship petitions with proof of income and expenses, though approval is rare, granted in less than 5% of cases. We prepare you for creditor objections by reviewing your financial records for discrepancies.

How A Bankruptcy Attorney Can Help

An attorney provides critical support during bankruptcy. We offer personalized guidance to simplify the process. We can help you with the following:

Evaluate your financial situation to recommend the best bankruptcy chapter
Prepare and file all necessary paperwork accurately
Represent you in court hearings and creditor meetings
Protect your assets by applying exemptions effectively

As Elmore County debt relief lawyers, we ensure you receive skilled legal assistance.

How Chapter 7 And Chapter 13 Discharge Debt

Chapter 7 and Chapter 13 bankruptcy offer different approaches to discharging debt. Each chapter addresses debt relief uniquely. For example:

Chapter 7 eliminates most unsecured debts quickly, often within months.
Chapter 13 creates a repayment plan for debts lasting over three to five years.
Chapter 7 requires passing a means test to qualify.
Chapter 13 allows you to keep assets while restructuring debt.

Selecting the appropriate chapter depends on your financial circumstances, which we assess thoroughly.

Chapter 7 discharges most unsecured debts and allows the trustee to liquidate nonexempt assets, such as a second car with equity exceeding the federal exemption limit of $5,850, to pay creditors. The process typically takes four to six months.

Chapter 13, which lasts three to five years, involves a court-approved repayment plan based on your disposable income. The amount you repay to unsecured creditors can vary widely depending on your income, expenses, and assets. This chapter also allows you to retain important property, like your home.

We calculate your eligibility using the Chapter 7 means test, which compares your income to the median income for your household size. For a family of two, this threshold is updated regularly and is typically around $60,000, but we verify the current figure before filing.

Options For Nondischargeable Debts

Managing nondischargeable debts requires strategic planning. We develop tailored solutions to help you address these obligations. Some options you can explore include:

Negotiate payment plans for child support or tax debts
Seek loan modifications for student loans
Pursue settlements for certain judgment debts
Create budgets to manage ongoing payments effectively

These strategies complement bankruptcy to improve your financial outlook. Considering these options can help you regain economic stability.

Contact Us For Bankruptcy Guidance

Struggling with debt? Contact us at 334-521-1454 or email us for a consultation. Our Elmore County bankruptcy attorneys provide experienced guidance to help you achieve debt relief. Call today to start your journey to financial recovery.

We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.