Eliminating (Some) Debts Through Bankruptcy
Experienced Bankruptcy Lawyer in Alexandria, Virginia
When you file for bankruptcy, it does not magically erase all of your financial obligations. However, by eliminating a large portion of what you owe, you will have a lot more money available to pay down debts that are not discharged in bankruptcy.
I am Nathan D. Baney, a consumer and small business bankruptcy attorney serving Alexandria, Fairfax and northern Virginia, as well as Washington, D.C. Contact me today for a free consultation to discuss solutions to your financial puzzle.
Which Debts Can I Discharge in Bankruptcy?
You can discharge most unsecured debts (debts not anchored by collateral), such as:
- Credit card debt
- Charge card balances
- Medical bills
- Most judgments
- A second mortgage (such as a home equity line of credit), if the market value of your home has dropped below the amount of your first mortgage
I am aggressive in seeking to discharge debts. This requires intimate familiarity with state and federal bankruptcy law and the trustees who handle bankruptcies in northern Virginia. I have helped some clients discharge as much as $200,000 in total debt.
Warning: Spending sprees or running up your credit cards in the months prior to filing can cause you to lose access to the bankruptcy process — or even result in criminal charges of bankruptcy fraud.
Which Debts Are Not Covered by Bankruptcy?
You cannot eliminate secured debts, such as your home mortgage or car loans. In a Chapter 7 bankruptcy, you will have to decide whether to surrender the asset or reaffirm it by continuing the payments. In a Chapter 13 bankruptcy, you can save your home from foreclosure; if you are able to keep up with the current mortgage, the arrears (past due house payments) are rolled into your repayment plan and spread out over a number of years.
Other debts that are not, in general, dischargeable:
- Student loans
- Child support or alimony
- Court fines or criminal restitution
- Judgments against you for personal injury or wrongful death
Can Taxes Be Discharged in Bankruptcy?
Yes and no. Certain back taxes can be discharged if they are at least three years old and you properly filed returns at the time. This is a very complex and fact-specific area of the law. I can help you understand which taxes, if any, are eligible.
Let's Discuss Your Debts and Your Options
Every bankruptcy case is unique. Call my Alexandra office at 571-482-7358 for a free consultation. I can arrange evening or weekend appointments, or even travel to your location in the Fairfax County area.
Under the current Bankruptcy Code, I am classified as a debt relief agency. I help people file for bankruptcy relief under the Bankruptcy Code.
