Discharging Debt in Indianapolis
Affordable Bankruptcy Lawyers Serving Greenwood & Muncie
Bankruptcy has many advantages for people who are facing extensive amounts of stress from attempts at debt collection. For most individuals, the main goal of bankruptcy is to discharge debt to end creditor harassment and become financially sound. Discharge means that your debts are forgiven and eliminated, but you might be required to recognize the income for tax purposes.
Bankruptcy discharges release the debtor from liability to pay back the majority of his or her debts. People who file for bankruptcy may view it as a daunting task, but most individuals are released from anxiety once their debts are eliminated. Feel free to speak with our Indianapolis bankruptcy lawyers today to find out how your debts can be discharged!
Debt Discharge Through Bankruptcy
In order for debtors to obtain a fresh financial start, they must determine what the best option is for their circumstances. Individuals who file for bankruptcy immediately recognize the benefits of this action.
Advantages of debt discharge include:
- Ability to get a car loan
- Refinancing of a mortgage
- Ceasing of a foreclosure process
- Cancellation of collection actions
After receiving a bankruptcy discharge order, filers will also be able to receive credit card offers to begin rebuilding their credit.
Although most debts can be eliminated, some are not dischargeable. Some of the debts that cannot be discharged include student loans, child support, alimony, as well as federal, state, and local taxes. The timing of a discharge will largely depend on the chapter of bankruptcy you choose. At the end of a Chapter 7 bankruptcy, most dischargeable debts are eliminated.
Under a Chapter 13 bankruptcy, the discharge can take place after the debtor has promptly made payments ordered by the court. Keep in mind, however, that debtors will be responsible for any debts that are acquired after filing and before receiving a discharge. Also, the court can deny a discharge under either bankruptcy chapter if the debtor failed to complete the mandatory instructional course on financial management.