Will Filing Chapter 7 Clear Unsecured Debts?
A San Francisco bankruptcy attorney explains how filing Chapter 7 can affect your unsecured debts.
Many people have this idea that a Chapter 7 bankruptcy in California, means that all their unsecured debts are wiped out. While unsecured debts, that is debts that are not tied to some sort of collateral, are cleared out, there are still some that are not. Some of those unsecured debts that will not be cleared out with a Chapter7 bankruptcy in California is a child support debt. If you owe child support, you will still continue to owe it, even after you have filed for a Chapter 7 bankruptcy in California.
Other unsecured debts that are not cleared are federal student loans and or debts that were acquired on the basis of fraud. These type of fraud debts include writing hot checks, that is making a check for an amount that you knew you did not have in your bank account. Another type of fraud debt is acquiring a credit card by lying on your credit card application. Debt owed on taxes is not cleared by filing for Chapter 7 either. Other than that, yes, filing for Chapter 7 bankruptcy will help clear out any unsecured debts you may have, which are those debts that are not tied to collateral.
If you would like more information on this topic or other bankruptcy topics, please contact our San Francisco office at (415) 946-8882 or (1800) 941-6730. We at Sagaria Law can connect you with one our our experienced San Francisco bankruptcy attorneys. We have bankruptcy attorneys located throughout California and Oregon to assist you with your bankruptcy questions. If you need assistance regarding a Chapter 7 bankruptcy, a Chapter 11 bankruptcy, a Chapter 13 bankruptcy, bankruptcy litigation, legal debt settlement, mortgage modification, lien stripping, a cram down, stopping a foreclosure or wage garnishment, discharging debt, etc. we can help! Please contact us to receive a free consultation or visit our website at www.sagarialaw.com to request an in-person consultation with an experienced bankruptcy attorney. We have an exceptional team of bankruptcy lawyers, bankruptcy client care specialists and bankruptcy staff supporting San Francisco.
