Eliminating Debts Through Bankruptcy In Louisiana
The general rule of thumb is that unsecured debts are discharged in bankruptcy, while secured debts must be paid at least up to the value of the collateral. Some obligations (such as child support) can never be discharged.
The experienced lawyers of Simon Fitzgerald LLC, can help you determine whether to file Chapter 7 or Chapter 13 — or whether to file bankruptcy at all — based on which your debts are dischargeable.
Maximizing The Debt You Discharge
Our goal is to eliminate as much debt as allowed under the law, to give you relief from creditor harassment and promote a fresh financial start. Contact us for a free consultation at one of our five offices in Louisiana:
What Debts Are Eliminated In Bankruptcy?
A secured debt is a debt connected to collateral; if you default on a secured debt and are not in Chapter 13, the creditor can seize and force the sale of the property to collect the debt. Unsecured debt is not backed by any assets and can usually be eliminated in Chapter 7 or reduced or eliminated in Chapter 13.
Examples of unsecured debts discharged in bankruptcy include:
- Credit card debt
- Payday loans
- Retail charge cards
- Overdrafts at banks
- Medical bills
- Judgments not secured by real estate
Note: Some taxes are not dischargeable and some are dischargeable
What Debts Cannot Be Discharged?
- Debts incurred by fraud.
- Fraudulent debts such as debts incurred through falsified loan applications or running up credit cards immediately before filing bankruptcy may not be dischargeable.
- Other nondischargeable debts: Child support, alimony, most taxes, student loans, criminal fines or restitution.
- A chapter 7 filing generally discharges eligible debts entirely. A chapter 13 filing can also discharge all or a portion of the included debt.
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