There are a number of reasons why people choose to file for bankruptcy. To stop foreclosure, to stop wage garnishment and to stop creditors are three reasons. However, the most common reason to file for both Chapter 7 and Chapter 13 bankruptcy is to discharge of your unsecured debts.

A discharge is a court order which states that you do not have to pay a debt. In Chapter 13 bankruptcy cases, this discharge usually comes after a three to five year payment plan. In Chapter 7 bankruptcy, this discharge will come as soon as the bankruptcy has been accepted and confirmed by the courts

Dischargeable Debt Fine Print

There are a few things to consider when it comes to discharging debt with bankruptcy which are outlined below:

• Not all debts are dischargeable. While most unsecured debt, such as credit card debt and utility bills can be discharged, others cannot. Non dischargeable debt includes most taxes, child support, alimony, student loans, and lawsuits to name a few. A Minneapolis bankruptcy lawyer will be able to help you determine which debts qualify for discharge under the bankruptcy laws.
• You will only be discharged of debts that have been incurred before the date you filed. What this means is if you file before Christmas and then spend $3,000 on your credit card for presents, these debts will not be counted as dischargeable.
• When it comes to Chapter 7 bankruptcy, you will only be able to receive a discharge every 8 years. This means if you find yourself in trouble with your finances after filing for bankruptcy, you might be out of luck.
• Only debt that has been listed will be discharged. This means that if you forget to mention certain debt on your documentation, then the debt will not be discharged.
• Your discharge will be denied if the judge finds that you have done something dishonest with your claim. This can include hiding property, falsifying records or disobeying a court order.

Dischargeable Debt and Secured Debt

One of the most common concerns surrounding bankruptcy is what happens to your secured debt, namely your car and your mortgage payments? Will they be discharged? The answer is no- you are still responsible for making the payments on your home and your car and on any other secured claims. However, in Chapter 7 bankruptcy cases, you can choose to discharge any secured debt but this means the lending company will be able to take away your property or your vehicle. This is something every individual should discuss with an experienced Minneapolis bankruptcy lawyer.

Why Contact a Bankruptcy Attorney?

Most of us are confused and overwhelmed at the process of filing for bankruptcy and discharging your debts. The paperwork can be demanding and you want to make sure you do every little thing right to avoid confusion and possible denial down the road. This is why it is so important to speak to a Minneapolis bankruptcy lawyer.

Olson Law Firm has years of experience in discharging debt and thus can help you through this financial mess. For a free consultation regarding your bankruptcy options and your ability to discharge your debt, contact Olson Law Firm today at 612-816-2322.