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Bankruptcy will wipe out credit card debt, medical bills, and personalloans, but will not eliminate primary obligation debt; things like studentloans, child and spousal support, and newer tax debt. The company does not tell you your legalrights or tell you about free options you can take on your own.
There are many kinds of debts that can be sent to collections, including: Credit card payments Studentloans Medical bills Rent payments Utility payments Auto loansPersonalloans Tax debt The time it takes the original creditor to transfer your debt to collections varies.
Debt collectors have a legalright to pursue the collection of personal debt within the bounds of the law. Known as exempt assets, these are the things you may keep when you file for Chapter 7 bankruptcy. Debt Collection Laws: What Can Debt Collectors Do?
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