The Types Of Debts And How These Are Connected To Bankruptcy

Did you know that there are differences between non-consumer debt and consumer debt? Even though there are many differences, the most important one is the purpose for which you have taken the money. If you want to hire a bankruptcy attorney in OKC, whether your debt is non-consumer or consumer will affect the following proceedings.

An attorney can help you in dealing with legal procedures. There are two types of debt: non-consumer debt and consumer debt. Let us find out what each kind of debt means.

Non-consumer Debt:

Non-consumer debt is when you have taken debt for commercial purposes. However, it is not limited to business debt. You can also take a non-consumer debt for some other purposes that are not related to business.

We have touched on a few instances where you can get clarification from your bankruptcy attorney in OKC.

• Tax debt

• Mortgage for property that is connected to your business

• Car loans meant for your business

• Tort claims

• Commercial obligations

• Credit cards are needed for expenses made for business

Consumer Debt:

Now that you know what non-consumer debt is let us understand what consumer debt means. Consumer debt is a debt you may have taken from the bank for personal purposes, including family or household uses.

The following are some of the consumer debts that you need to know.

• A loan is taken for child support or providing alimony

• Car loans for personal use or family use

• A loan is taken to pay the home mortgage

• Credit cards used for family or self

Bankruptcy and The Type Of Debt:

Whether your debt matters in bankruptcy depends on the type of bankruptcy.

• Chapter 7: If your non-consumer debt falls under chapter 7, there are two outcomes you can expect. Your case can be terminated ‘for cause’ if it fails under 707(a). However, your lawsuit will not be dismissed if the case falls under 707(b).

• Chapter 13: For a consumer debt under this category, your bankruptcy attorney in OKC may get you an exemption from the taxing authorities and allow you impairment of unsafe debts.

Hire Experienced Help:

While every case is unique on its own, you do need to hire an attorney if you are going to appeal to the court. A lawyer is best suited to guide you through the proceedings after carefully examining the type of your debt. You can expect experienced and skilled bankruptcy attorneys at Reneau Law Group in OKC. Contact us to know more.

**Disclaimer: The above article does not imply a relationship between attorney and client, nor does it aim to provide any legal advice.