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Discharging Your Debt

What Is a Debt Discharge?

A debt discharge in Chapter 7 bankruptcy is when you are released from the debt - you are completely free of it. There are certain non-dischargeable debts, but unsecured consumer debt such as credit card bills, medical bills, personal loans, back utility payments, and phone payments are all eligible for discharge. At the end of the bankruptcy process, these debts will no longer be yours; you are free from that problem. This can be an important matter, as many people have high levels of credit card debt that they incurred while struggling to stay afloat in a tough economy. Some may have huge debts to pay due to a divorce, or a medical emergency may have led to expensive medical bills.

In a Chapter 13 bankruptcy, the process is different. How much debt is actually paid will vary depending upon your circumstances and your budget. You make regular (usually monthly) payments over a 3 - 5 year period. At the end of the term of the bankruptcy, any remaining amount of debt will normally be discharged. There are also big advantages in this form of bankruptcy. For example, if you have overdue mortgage payments, you have the ability to keep your property and pay these past-due payments off over the period of the bankruptcy. Another advantage is that either the interest on the overdue obligations will be -0- or very much less than you are currently dealing with.

No matter what your situation is, I, as your Bend and Hermiston bankruptcy attorney, have solutions that could work for you. You are given the opportunity to be free from a large portion of your debts through bankruptcy under the federal bankruptcy laws. I am here to guide you through the debt discharge process and to make sure you get the most out of filing for bankruptcy.