If you face a level of debt in which you know you cannot pay off debt discharge could be your best option. This course of action allows you to discharge certain types of debt that will revert into taxable income.
Credit card or unsecured loans are the most common form of debt, and can be eliminated if you file for bankruptcy. Most often this is the easiest type of debt to get rid of, as there are millions of people who have credit cards facing the same issue every day. Injury to you or to another person, which incurred debt, can be eliminated as well unless you were driving under the influence of an illegal substance.
Medical bills or lawsuits from creditors can be eliminated as well, but if you are found to have committed fraudulent action by the plaintiff your debts cannot be discharged. Utility bills and other unpaid household bills can be discharged, but a foreclosed home can become more complicated. Depending on the loan you owe a creditor and the remaining balance on the house will dictate the debt you owe on your loan. Every case is unique, and because of this we suggest contacting the attorneys at our firm to help you figure out what debt is dischargeable.