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Can You File Bankruptcy on Personal Loans? 

It may take you by surprise, but you can file for bankruptcy for personal loans. In this blog, we provide some relevant insights and information to help you understand the process of filing for bankruptcy on personal loans.
Can You File Bankruptcy on Personal Loans
Can You File Bankruptcy on Personal Loans? 
If you are struggling with the burden of a monumentous debt, including personal loans, bankruptcy can be an appropriate avenue to find some financial relief. Let's explore if you can file bankruptcy on personal loans, among other valuable insights.
In this article

If you find yourself burdened by a mountain of debt, including personal loans, bankruptcy may be an avenue to explore for finding financial relief.

This blog provides guidance, insights, and valuable information to help you understand the process and make informed decisions. Read on to know if you can file bankruptcy on personal loans.

Can You File Bankruptcy on Personal Loans?

It may take you by surprise, but you can file bankruptcy on personal loans. Personal loans are generally considered unsecured debts, which means they are not backed by collateral. While filing for bankruptcy, be it Chapter 7 or Chapter 13, your loans can be included in the bankruptcy proceedings.

In a Chapter 7 bankruptcy, your eligible personal loan debts may be discharged, meaning you are no longer responsible for repaying them. However, it is essential to note that not all debts are dischargeable in bankruptcy, and specific criteria need to be met.

In a Chapter 13 bankruptcy, you may still be required to repay a portion of your loan debts through a structured repayment plan over a specified period.

However, it is essential to consult with a bankruptcy attorney. They will provide details about specific rules and regulations regarding bankruptcy and personal loans, as they can vary depending on your jurisdiction and individual circumstances.

Types of Debt That Won’t be Discharged Through Bankruptcy

  • Child support
  • Certain unpaid taxes
  • Debts resulting from malicious acts
  • Alimony
  • Personal injury judgments
  • Homeowners association dues

Conclusion

In conclusion, bankruptcy can relieve individuals struggling with personal loan debts. Whether through a Chapter 7 discharge or a structured repayment plan in Chapter 13, personal loans can be addressed within the bankruptcy process.

However, consult with a knowledgeable attorney to understand if you can file bankruptcy on personal loans. They can guide you through the whole process of the law and help determine the best course of action based on your unique circumstances.

Remember, bankruptcy should always be approached with careful consideration and professional guidance to ensure the best possible outcome for your financial situation. Meanwhile, Beem is here to help you with any unforeseen financial situation with the option to explore the best personal loans ranging from $500 to $100,000.

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Author

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Nimmy Philip

A content specialist with over 10 years of experience, Nimmy has a knack for creating engaging and compelling content across various mediums. With expertise across journalistic features, emailers, marketing copy and creative writing, Nimmy specializes in lifestyle and entertainment content.

Editor

This page is purely informational. Beem does not provide financial, legal or accounting advice. This article has been prepared for informational purposes only. It is not intended to provide financial, legal or accounting advice and should not be relied on for the same. Please consult your own financial, legal and accounting advisors before engaging in any transactions.

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