Does Chapter 7 wipe out all debt?
Whether you are planning to file for bankruptcy, or you are already in debt, it is important to know what debts can be discharged in bankruptcy. It is also important to know what is not discharged.
You will not be able to discharge all debts in Chapter 7 bankruptcy. This is because there are limits on which debts can be discharged. There are also exceptions. For instance, certain tax debts are not discharged. Also, some types of loans, like educational loans, are not included.
If you file for Chapter 7 bankruptcy, you will have to go through the process of meeting with creditors and demonstrating to them that you have the resources to repay your debt. The process can take up to six months. Then, the bankruptcy court will issue a discharge order. After this, your creditors cannot pursue you anymore. If you have any questions about filing for bankruptcy, you should seek out a reputable legal adviser.
Before filing for bankruptcy, you should go through pre-bankruptcy credit counseling. This is usually offered by nonprofit credit counseling agencies. This will help you determine whether bankruptcy is the best option for you. You should also set up a budget. After you have filed for bankruptcy, you may need to wait two or three years before you can get a mortgage. This will also have a negative impact on your credit score.
You will also need to pass a means test. This test determines whether your disposable income is below the median income in your state. If you pass this test, you will receive a discharge in most cases. However, if you do not pass this test, your case may be converted to a Chapter 13 bankruptcy.
If you have any questions or in need a Chapter 7 Bankruptcy Attorney, we have the Best Attorneys in Utah. Please call this law firm for free consultation.
Ascent Law LLC
8833 S Redwood Road Suite C
West Jordan UT 84088
(801) 676-5506
Disclaimer: This is not legal advice and is simply an answer to a question and that if legal advice is sought to contact a licensed attorney in the appropriate jurisdiction.
