What kind of debts does Bankruptcy eliminate?
In a Chapter 7, almost all unsecured debts with certain exceptions such as your most recent 3-years of income tax liabilities, student loans, alimony and child support obligations. Chapter 7 does not eliminate secured debts, except for liens on personal property that are redeemed for the fair market value of the collateral in the bankruptcy.In Chapter 13, all debts dischargeable in a Chapter 7, plus you get a super discharge. This means that certain debts that are non dischargeable in Chapter 7 are discharged in Chapter 13. You can also modify the rights of secured creditors in Chapter 13, which means that you can strip down a lien to the value of the collateral such as a car in your Chapter 13 payment plan.
In a Chapter 7, almost all unsecured debts with certain exceptions such as your most recent 3-years of income tax liabilities, student loans, alimony and child support obligations. Chapter 7 does not eliminate secured debts, except for liens on personal property that are redeemed for the fair market value of the collateral in the bankruptcy.In Chapter 13, all debts dischargeable in a Chapter 7, plus you get a super discharge. This means that certain debts that are non dischargeable in Chapter 7 are discharged in Chapter 13. You can also modify the rights of secured creditors in Chapter 13, which means that you can strip down a lien to the value of the collateral such as a car in your Chapter 13 payment plan. Do I need to list all my debts? Yes. However credit cards with zero balance are not considered debts. Does Chapter 7 or 13 stop lawsuits and judgments? Yes, immediately when we file your case. There are certain exceptions to this rule. One major exception is for child support enfor
