If you fall behind on a debt, the creditor can file a lawsuit in an effort to get a judgment against you. A judgment allows a creditor to garnish wages and bank account and it also allows them to put a lien on your home. Many people who are in this situation consider the possibility of a bankruptcy filing. When you file for bankruptcy, you get an automatic stay immediately. This prohibits creditors from trying to collect on their debts while the stay is in place, and a pending lawsuit would be stalled. Even if there is an existing judgment, if the debt is dischargeable, bankruptcy would in fact wipe it away when the discharge is granted, so you will be free going forward.
Dischargeable debts are typically unsecured debts like credit card balances, certain types of personal loans, and unpaid health care bills. There are other types of debts that cannot be discharged. For example, the laws are very strict when it comes to family law matters. Child support payments are never going to be to be discharged through bankruptcy, and spousal support is also a non-dischargeable debt.
Many people struggle with student loan debt and unfortunately this type of debt cannot be discharged through bankruptcy (with limited exceptions). If you have a judgment against you due to an injury or death that was caused by an instance of drunk driving, your liability will not go away if you file for bankruptcy. Plus, if you owe any type of debts to the government, like back taxes or fines, they would not be discharged through a bankruptcy filing. These are all debts that are automatically non-dischargeable, but a creditor can file an objection to a discharge on a debt that is not always non-dischargeable when certain circumstances exist.
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There is no reason to sit around wringing your hands when you reach the conclusion that your debt has become overwhelming. Bankruptcy can be the solution that provides you with a new lease on life so that you can move forward and start to rebuild your credit history. We have an office that serves the Tri-Cities in Washington, and we have a Vancouver location. Our firm also assists clients throughout the state of Oregon, and we offer free, no obligation consultations. Give us a call right now at 800-682-9568 and we will to be glad to schedule an appointment that fits into your schedule.