If you’re struggling with overwhelming debt, you’re not alone. Financial hardships can arise unexpectedly, leaving you unsure of your options. Fortunately, bankruptcy offers a legal path to relief. At 605 Bankruptcy, we understand the challenges you face, and we’re here to guide you through this process with knowledge and compassion. Whether you’re considering Chapter 7 or Chapter 13 bankruptcy, our goal is to help you regain control of your financial future. Contact our skilled South Dakota debt relief lawyers for a free consultation today.
Types of Debt Addressed Through Bankruptcy
Bankruptcy can provide relief from a wide range of debts, depending on your unique situation. Some of the most prevalent types of debt that bankruptcy can often help with are as follows.
- Credit Card Debt– Credit card debt is one of the most common reasons people file for bankruptcy. High interest rates and fees can make it nearly impossible to pay down balances once they grow beyond your control. Chapter 7 bankruptcy can eliminate most unsecured credit card debt, giving you a fresh start. In Chapter 13 bankruptcy, credit card debt is typically reorganized into a manageable repayment plan, allowing you to pay a portion over three to five years while stopping further interest from accumulating.
- Medical Debt– Medical expenses are a leading cause of financial distress in the United States. Even with insurance, unexpected health issues can result in insurmountable bills. Bankruptcy can relieve you of medical debt, either by discharging it entirely through Chapter 7 or by restructuring it under a Chapter 13 plan.
- Student Loan Debt– While student loan debt is generally more challenging to discharge, it’s not impossible. If you can demonstrate that repaying your loans would impose an undue hardship, they may be partially or fully discharged. Chapter 13 bankruptcy can also help by consolidating student loan payments into a single, more affordable monthly payment as part of your repayment plan.
- Tax Debt– Certain types of tax debt can be addressed through bankruptcy, though the rules are complex. For example, income tax debts that meet specific criteria—such as being more than three years old and properly filed—may be dischargeable in Chapter 7 bankruptcy. In Chapter 13, tax debt is included in your repayment plan, giving you time and structure to pay it off without additional penalties or interest. Our experienced team of debt relief lawyers can help you determine
whether your tax debts qualify for relief.
- Mortgage Debt– If you’re struggling to keep up with your mortgage payments, bankruptcy can help you avoid foreclosure and possibly save your home. Chapter 13 bankruptcy allows you to catch up on missed payments over time while keeping your property. In Chapter 7, while some homeowners may face foreclosure, certain exemptions can protect your home equity.
Contact Our Debt Relief Lawyers Today
If debt is keeping you up at night, don’t wait to seek help. Contact 605 Bankruptcy today for a free consultation. Our South Dakota debt relief lawyers can help you understand how bankruptcy can address credit card debt, medical bills, student loans, tax obligations, and more. Let us stand by your side as you take the first steps toward financial freedom.
