Castalian Springs Bankruptcy Lawyer

From losing your job, experiencing medical emergencies, or dealing with any other unexpected change in life, you might be surprised to have ended up in a place where you are struggling financially. It can happen to anyone, and there is no shame in seeking support to get back on the right track. If this has happened to you, a Castalian Springs bankruptcy lawyer can help you understand your rights and evaluate your options to recover financially.

At Kerney Law Firm, we have seen firsthand how difficult financial hardships can be to manage. We want everyone in Castalian Springs to know that they never have to face this challenge alone. We are always standing by and ready to better understand your unique situation, explain what bankruptcy options you have in clear terms, and advocate for your interests so you can move forward to the next phase in your life with a clean bill of financial health.

What Debt Is Covered Under Bankruptcy?

When considering bankruptcy for financial relief, it’s important to understand what types of debt are on the table to be considered for elimination. Bankruptcy law distinguishes between dischargeable and non-dischargeable debt. The debt that is labeled dischargeable will be completely wiped out, and the rest will still need to be repaid.

Some of the most common forms of dischargeable debt include:

Credit Card Debt

Overwhelming credit card balances are one of the most common forms of debt that can be discharged through bankruptcy. Whether or not the debt stems from purchases, late fees, or cash advances, it will generally be eliminated if the account owner qualifies for Chapter 7 bankruptcy. If not, Chapter 13 bankruptcy can be used to help repay these debts through a structured repayment plan.

Medical Bills

Bankruptcy can also provide much-needed relief for individuals who have been burdened with overwhelming medical debt. Because medical bills are considered unsecured debt, meaning they cannot be tied to collateral, they are fully dischargeable under both Chapter 7 and 13 bankruptcy. This makes either bankruptcy option a valuable plan for those who are facing financial hardships due to the unexpected prevalence of their medical expenses.

Personal Loans

If you have any unsecured personal loans under your name, such as those issued by a bank, credit union, or online lender, it could be eligible for discharge. Because these loans also do not require collateral, they can be eliminated under Chapter 7 bankruptcy law. If you only qualify for Chapter 13, your personal loans must be repaid partially before the rest can be discharged. How much this amount is will depend on the debtor’s ability to repay.

Utility Bills

If you also have mounting utility bills, such as unpaid electric, water, gas, or similar utility services, this can also be discharged through the bankruptcy process. However, some utility companies may require a deposit to continue providing service after bankruptcy has been filed. Work with your attorney to ensure this is handled properly to avoid unnecessary loss of these essential services.

Contact Kerney Law Firm Today

If you are looking for a professional analysis of your current financial situation and for recommendations on whether bankruptcy is right for you, contact our firm today. We will take a comprehensive look into your situation and guide you down the road of financial recovery.