Eliminate certain types of debt… permanently.
Chapter 7 bankruptcy gives you the right to eliminate most of the common types of unsecured debts, like credit card debt, medical bills, bank loans, finance company loans and credit union loans. It can also eliminate unsecured debts left over from a divorce, a failed business, personal guarantees, trade creditors, and even certain income taxes over 3 years old. We have clients who routinely eliminate anywhere between $5,000 and $150,000 worth of unsecured debt – permanently, with no obligation to ever pay it back.
When you eliminate debt using bankruptcy, you also eliminate the obligation to pay interest on that debt. This can translate into hundreds of dollars per month in lower payments.
How can Bankruptcy work like this?
Long ago, Congress decided that it was important to give honest, hard-working people a way to get free from the burden of debt. Why? Because saving good people from getting discouraged and becoming unproductive members of society is good for our country. Congress made the Bankruptcy laws powerful enough to really make a difference, and that is why bankruptcy is the real deal.