Most unsecured debt is dischargeable in bankruptcy.  Unsecured debt is debt the kind that does not have a lien or property attached to it.  This typically includes credit card debt, medical bills, loans and judgments without a lien.  Depending on whether you qualify for Chapter 7 or Chapter 13 Bankruptcy, it is possible to discharge and eliminate all your unsecured debt in a Chapter 7 Bankruptcy, or greatly reduce the amount you must pay back to your creditors in a Chapter 13 Bankruptcy.

Once these debts are discharged, you will have no obligation to repay them ever again, and creditors are precluded from ever taking any action against you to collect.  They simply go away.  Additionally, once your bankruptcy petition is filed with the court, all creditors must stop taking any action against you to collect on any debt.  All phone calls, letters and contact must stop.  In fact, if the creditors wrongly contact you, it may be possible for you to collect penalties from them.  The “automatic stay” is serious business and the courts enforce it.

If you have questions about filing for Bankruptcy in California, contact our San Francisco bankruptcy law firm.