Law Offices of David A. Tilem

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Is all my debt dischargeable in a Chapter 7 bankruptcy filing?

The quick and definitive answer to the above-posed headline query is that not all debt qualifies for automatic erasure in a Chapter 7 bankruptcy filing.

However, the fact that some debt obligations might remain following a bankruptcy filing and subsequent discharge matters very little to many debtors as far as the big picture regarding their debt exactions is concerned.

And the reason for that is this: Notwithstanding that some limited amount of debt might be deemed by a bankruptcy court to be nondischargeable, a Chapter 7 filer is often capable of shedding many types of debt that are most onerous and that collectively account for the highest payment duties.

For example, medical debt is often shockingly high for individuals and families, and eliminating it through Chapter 7 bankruptcy can truly enable a filer to obtain a fresh financial start. The same is true of credit card debt, which can become flatly troublesome in a hurry and ultimately unmanageable. Bankruptcy can help alleviate that stress.

As noted in an online overview of the Chapter 7 process and outstanding debt, some exactions are deemed as "priority debts" and are impossible or quite difficult to dispose of. They include things like child support and student loans. Moreover, tax-related obligations typically remain following bankruptcy, although they can often be restructured.

For many people, the bottom line regarding bankruptcy -- a constitutionally mandated and time-honored legal remedy that as many as 1.5 million people reportedly take advantage of each year in the United States -- is that it enables them to shed most (and, indeed, sometimes all) of their troublesome debt and regain firm financial traction.

A proven debt-relief attorney can answer questions and provide diligent legal representation to any California resident facing unmanageable financial challenges and seeking meaningful relief.

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