What kinds of debt can be discharged through bankruptcy?
A debt may be discharged if it is unsecured, meaning the creditor has no authority to claim some of your property if you do not repay it. Common unsecured debts include credit card bills, personal loans, and medical bills. It is important to note that even unsecured debts may not be discharged if those creditors successfully protest or the judge suspects you of fraud.
In contrast, a secured loan involves a contract or law granting that creditor permission to seize property to repay debts. Common examples are taxes, child or spousal support, and federal loans. If you file for bankruptcy, you will still be held responsible for these debts.
To learn more about secured and unsecured debt, and how it relates to your finances, contact the Milwaukee bankruptcy attorneys of the DeLadurantey Law Office, LLC at 414-377-0518.