Chapter 7 bankruptcy is a type of bankruptcy that can clear away many types of unsecured debts. This is usually when an individual is far behind on their bills and does not have the means to afford monthly payments and living expenses. However, this financial relief comes with a few limitations on the type of debts it discharges and the ones it does not. Learn information about Greenbelt, MD.
Debts Discharged in Chapter 7 Bankruptcy
Some of the unsecured debts, which chapter 7 bankruptcy discharges include credit card debt, medical bills and unsecured loans. After your successful filing, the court will discharge these debts, usually about four to six months after you start. It is also worth noting that these apply to both individuals and business entities. Discover facts about How to File for Chapter 7 Bankruptcy in Greenbelt.
Generally, chapter 7 bankruptcy should dismiss most of the debts you owe. The sad truth is that there are limitations, which can be constant or depends on your creditor. The creditor can object and keep certain debts from being dischargeable. They include student loans, child support, alimony, back taxes, court fees and penalties. Others are homeowner association fees, any unsecured debts left off your filing and personal injury debts owed due to an accident while you were intoxicated.
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