If you're facing financial trouble, bankruptcy is a viable option that gets you out of the red by discharging your debts. This means you no longer have to pay them back — you’re released from any legal liability, permanently. Not all kinds of debt can be discharged, however. Find out what to expect from a Chapter 7 bankruptcy filing with the guide below. 

Chapter 7 vs. Chapter 13 Bankruptcy

Chapter 7 and Chapter 13 are the two most common types of personal bankruptcy filings. Chapter 7 allows more of your debts to be discharged more quickly, often in as little as a few months. That said, it’s possible that assets like your car or home may be liquidated to pay off creditors before remaining debts are discharged.

Chapter 13 bankruptcy works a little differently, as you propose a modified payment plan for your debts. If approved, you make these payments for a period of three to five years. After this, the leftover debts are discharged. While you pay more, your assets are better protected.

What Debts Are Discharged Under Chapter 7 Bankruptcy?

With Chapter 7 bankruptcy, you can discharge everything from credit cards and medical bills to back rent. Debts that can’t be discharged include taxes, child support, alimony, expenses owed for injuring people or property, government-related fines, and most government-funded educational loans. These debts must be repaid, even after filing. Additionally, if you acquire luxury goods or services that total more than $725 within 90 days of your filing, these debts are nondischargeable, as it’s presumed you didn’t intend to repay them.

If you’re facing financial trouble, let the Law Offices of Harry G. Lasser in Cookeville, TN, help you navigate your bankruptcy case. Their lawyers have more than 20 years of experience helping individuals regain their financial footing, and they’ll help you determine what debts you can discharge and which ones you’ll have to repay. They’ll work quickly and thoroughly to get you through the process as efficiently as possible, whether you’re filing for Chapter 13 or Chapter 7 bankruptcy. Visit their website to learn more about their services, or call (931) 372-9988 to schedule an appointment with an attorney today.