3 Misconceptions about Debt Discharges
If you are considering filing for bankruptcy, there are many important facts you should know before getting into bankruptcy proceedings. Certain misconceptions can have a major impact on your finances before, during, and after bankruptcy proceedings. At the Birmingham bankruptcy lawyers of Greenway Bankruptcy Law, LLC, we may be able to help you with your bankruptcy. For more information regarding our services, contact us at (205) 324-4000.
#1: Bankruptcy Discharges Totally Clear Debt
When a debtor files for bankruptcy, they may want to file for Chapter 7 bankruptcy in order to enjoy the benefits of debt discharge orders. These discharge orders do not fully clear all debt, however. Many forms of debt, including student loans and child support payments, are not included in debt discharges.
#2: Debt Discharges Cannot Be Challenged
When a person files to have their debt discharged by bankruptcy courts, this is no guarantee that they will be freed from their debt. When a debtor files for a discharge, the bankruptcy trustee or creditors may challenge that discharge. If their challenge is accepted by the court, the debtor may be held responsible for paying out a certain portion of a debt to the select creditor.
#3: A Discharge Closes a Case
When a debtor receives a discharge for their case, they may be on the first step towards financial freedom. However, the actual bankruptcy case is not closed yet. The bankruptcy trustee still needs to evaluate a debtor’s finances and make sure property is collected properly.
If you are facing serious financial troubles, bankruptcy may be the solution for you. To learn more about your options during these proceedings and how a legal advisor can help you throughout the process, contact the Birmingham bankruptcy attorneys of Greenway Bankruptcy Law, LLC, by calling (205) 324-4000.