Does Bankruptcy Clear All Debt?

When it comes to living the life of a debtor, bankruptcy can be a very powerful tool for helping wipe out some of the debt and the stress that comes with it. However, it is important to keep in mind that not all types of debt can be wiped out during a bankruptcy.

Filing for bankruptcy can be a very powerful tool for those who are suffering from severe debt. This remedy can help stop many different collections actions including intrusive calls, garnishing of wages, and even lawsuits (though there are some exceptions). It is also a powerful tool because it can wipe out some of the most common debts people acquire such as credit card debt, medical bills, personal loans and more. 

But bankruptcy does not stop all types of creditors and does not wipe out all types of debts and obligations. For example, even if you file for bankruptcy, you will still need to pay off student loans, child support, alimony, and most types of tax debt. 

What Can Filing For Bankruptcy Do For You?

Wiping out certain obligations is one of the best relieves that a bankruptcy filing can provide. In a way, the fresh start that filing for bankruptcy can give families is important. 

The two main types of bankruptcy that are filed for are chapter 7 and chapter 13. Each of these filings treats your debt and your property a little bit differently. This means that you should make sure you talk with a bankruptcy attorney in order to find which of the two bankruptcy types is best for your current situation and the type of debt relief that you are looking for, or are in need of. 

Different Types Of Debt

The most important thing to keep in mind when dealing with bankruptcy filings is knowing which of your debts will be wiped out and which obligations you will still need to take care of after the fact. 

This post was written by Trey Wright, one of the best bankruptcy lawyers in Tallahassee FL! Trey is one of the founding partners of Bruner Wright, P.A. Attorneys at Law, which specializes in areas related to bankruptcy law, estate planning, and business litigation.

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