What happens if your debt goes to a collections company?
If you're considering bankruptcy, it's important to know which debts will be included in the calculation of your disposable income. Here's why you should not include credit card or personal loan debt payments in Schedule J (Expenses).
Credit card and personal loan debt are not considered priority debts in bankruptcy, which means they can be discharged through bankruptcy. This means that you won't have to repay these debts after your bankruptcy is complete.
including them in your Schedule J (Expenses) could lead to a higher disposable income calculation and result in more of your other assets being liquidated to pay creditors.
Additionally, if you're able to repay some of your credit card or personal loan debt before filing for bankruptcy, doing so could help you qualify for a Chapter 7 bankruptcy instead of a Chapter 13. This could save you time and money in the long run.
The Law Offices of Omar Zambrano has helped thousands of people and businesses on the past to get out of debt and start over.
Our goal is to help you find a fresh start FAST!
Schedule your free consultation today! By Calling 626-338-5505 or visiting us at 12738 Ramona Blvd Baldwin Park CA 91706