How Do I Cancel My Debt?
When you legally cancel debt, you are discharging it, which is the main reason someone files for bankruptcy. In a normal bankruptcy situation, a majority of consumer debt can be discharged. This includes:
- Medical debts
- Credit card debts
- Some lawsuits
Our attorneys can help you determine if your debt can be discharged, or canceled, through the bankruptcy process. If you file for Chapter 7 bankruptcy, most debts will be terminated upon completion of the filing.
Chapter 7 filing is for individuals with unsecured consumer debt, like credit cards. Generally, when you file for Chapter 7 bankruptcy, you, as the debtor, may be allowed to keep significant assets including your vehicle, household contents and home.
Can I Keep Paying On My Home Or Truck After Filing For Bankruptcy?
After bankruptcy is filed, it is common to continue making payments on your home or vehicle in order to keep them. If you file for Chapter 7 bankruptcy, you will need to sign and file an agreement to repay these debts before the case is closed. This is called a reaffirmation.
If no agreement is filed requiring you to continue payments, the debt is canceled. The creditor could decide to not accept payments and may decide to repossess or foreclose on property. An attorney at Regazzi Law, LLC, can work with you and the creditor to discuss and sign the reaffirmation agreement.
Does Filing For Bankruptcy Mean I Will Lose My House?
If you are thinking of filing bankruptcy, you may worry that it means losing your home or vehicle. Chapter 13 bankruptcy utilizes a payment plan to pay off debts over several years. You will not lose your home with this filing if you immediately start making your regular payments and, if necessary, the catch-up payments outlined in your repayment plan. If you are up-to-date on your home mortgage, this payment is paid by you while other debts are encompassed in the Chapter 13 payment plan. If you are behind in mortgage payments, your house is brought into the payment plan and extra payments are made to make up the amount you are behind on.
Most people do not lose their homes if they can afford to make the mortgage payments when filing for Chapter 7 bankruptcy. Depending on the amount of equity you have and the value of your home, you have a strong possibility of keeping your home.
So You Have Decided To File For Bankruptcy. Now What?
If you have decided to file for bankruptcy, or at least want to learn more, consult with an experienced bankruptcy attorney. Filing for bankruptcy is complicated, and it must be done right, otherwise, you risk the bankruptcy court denying the discharge of your debt. Your attorney will help you gather the information necessary to get a clearer picture of your debt, your income and your budget to determine whether filing bankruptcy is truly the best option for the debt relief you seek.
Schedule An Appointment With Us To Learn More About Debt Relief Options
At Regazzi Law, LLC, we are here to help you make informed decisions that work for you. We can help manage lawsuits related to your debt, stop wage garnishments, limit collection calls and other attempts to recoup debt or foreclosures. We can help you understand the differences between the various bankruptcy chapters and the resulting impact on your financial future. Email us or call 505-265-1000 to set up an appointment to learn more.