When you file for bankruptcy there are many debts that will be eliminated. It is important to understand that there are certain debts that bankruptcy will not eliminate, as well. Debts from credit cards can be wiped out when filing for bankruptcy, but ones such as student loans will remain even after filing your bankruptcy. Also, debts such as child support or alimony cannot be eliminated by filing bankruptcy. The following is a list of a few of the debts that filing bankruptcy can eliminate for you.
Credit Cards and Unsecured Debt
Filing for bankruptcy will eliminate your credit card debt, unless you have secured cards. An unsecured debt is a debt that doesn’t have a lien attached to it in case of non-payment. A secured debt does have a lien and the creditor may be entitled to your home or other property if you fail to pay. Unsecured debt is the only type of debt you can wipe out when filing for bankruptcy. Depending on the type of bankruptcy you file, you may have to pay back a portion of your unsecured debts.
Stop Harassment
Usually, any harassment you get from creditors will be stopped once you file for Bankruptcy in Glendale. If this harassment comes in the form of calls and letters there are legal documents you can issue to stop it. If the harassment is in the form of attempts to repossess items, then you need to check with an attorney for bankruptcy information in Glendale to see what course of action you should take. If the creditor has a lien on your property there is nothing that can be done to stop them from taking the items. A lien is a tool used by creditors to ensure they do not lose money when loaning money. You should read carefully over any loan or credit paperwork before signing it due to the risk of liens being place on your property.
Be sure to consult with an attorney that has previous experience in filing personal bankruptcies. Usually you will be able to receive all of the Bankruptcy Information in Glendale that you need to decide if bankruptcy is the route you want to take. Be sure to inform the attorney off all secured and unsecured debts, so they can better assess your situation.
