The timing of your Chapter 7 “straight bankruptcy” case can make a huge difference in dealing with your debts.
In most straightforward Chapter 7 cases all debts not secured by any collateral are discharged–forever written off. You pay nothing on them.
This 4th of July make your move towards financial freedom. Get informed. You’ll feel tons better once you know your options.
If one of your creditors is not included in your “schedules” you risk continuing to owe that debt after your bankruptcy is finished.
Creditors will be a little less likely to challenge the writing off of recent uses of credit.
Through bankruptcy, you may be able to and want to pay a co-signed debt. If not, you need protection from that debt and from your co-signer.
With Chapter 13 you may have to pay some part of the taxes that you could just discharge under Chapter 7, but it may be worth it.
If you’re considering filing bankruptcy, try to avoid using credit cards to finance the holidays. But if you do, there are some extra risks.