Are Out-of-State Debts Discharged in Bankruptcy? Personal bankruptcy has helped millions of Americans free themselves of unmanageable debt loads and get a fresh financial start. Many of those who find themselves facing what feels like an avalanche of debt due to credit cards, personal loans, medical, and other bills are in that position through no fault of their own, often due to unemployment or an unexpected medical crises. If you cannot find a way out of a morass of debt, you should know that our Los Angeles bankruptcy attorney may be able to help you retake control and move on with your life in a positive, debt-free direction.
Chapter 7 and chapter 13 bankruptcy both allow debtors to discharge their out-of-control debts through different methods. Debtors who qualify for Chapter 13 protection have the opportunity to pay off a portion of their debts through a payment plan that lasts from three to five years. Credit card debts, personal loans, and other unsecured debts may all be able to be discharged through chapter 7 bankruptcy. Certain aspects of bankruptcy may be handled at the state level, such as bankruptcy exemptions, which allow debtors to retain a certain portion of their personal property and assets. However, bankruptcy is a federal proceeding, which means that both in-state and out-of-state debts are considered dischargeable. Dischargeable debts include credit card debts, certain types of judgments, and unsecured debts. Although out-of-state debts are dischargeable, not all debts can be discharged. For instance, some types of tax debts, domestic support, and student loans are generally not considered dischargeable whether they are obtained in state or out of state. If you are considering filing for personal or business bankruptcy, the advice of a seasoned bankruptcy attorney can help you determine which chapter is best for your situation, which set of exemptions can help you best protect your assets, and which of your debts are dischargeable. Contact our bankruptcy lawyer in California today to schedule your consultation or to learn more about your options. Source: Los Angeles Bankruptcy Lawyer Back to Blog |
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Samuel- Woodland Hills, CA
My wages were being garnished, and I was getting sued by creditors. I could not pay my debts to credit card companies. Hamid Soleimanian filed a chapter 7 bankruptcy for me and stopped my wages from b...