Owing a significant amount of debt can affect your life in many ways. It can cause you to deplete your savings, and you may have to rely on credit cards just to make ends meet. You may also be getting numerous phone calls from debt collectors and facing the threat of collection efforts against you, such as wage garnishment.
Thankfully, there is a way out from overwhelming debt. You may be relieved to know that bankruptcy offers a way to deal with certain types of debt once and for all. However, not all types of debt are eligible for discharge through this process. Before you file, it is helpful to understand what types of debt you can get rid of if you decide to move forward with this process.
What is the discharge process?
By filing for bankruptcy, you will essentially be able to erase certain types of your debt. This allows you to move forward and regain the ability to pay for basic needs. This also gives you the opportunity to address balances that are not eligible for discharge. While it can depend on the type of bankruptcy protection you are under, the following debts are likely not dischargeable:
- Some of your tax claims
- Unpaid child support balances
- Unpaid alimony payments
- Damages you owe for causing another person harm or injury
- Debts related to most types of student loans
- Unpaid fines and penalties levied by the government
Chapter 7 bankruptcy allows for the discharge of eligible debts without requiring the applicant to pay off balances. However, while Chapter 13 does allow for the discharge of some debts, the applicants may have to make payments on others.
The ability to discharge certain debts is only one of the many benefits associated with the bankruptcy process. In addition to this, you will also enjoy the benefit of the automatic stay, which halts all contact from creditors and debt collectors.
Is it right for you?
Bankruptcy is not always the best choice in every situation, but it could be the optimal choice for you. If you think it is, you will find it beneficial to first discuss this option with an experienced Wisconsin bankruptcy attorney. He or she can help you see the benefits of this process and how it could be the right way for you to obtain a brighter future free from certain types of debt.