How does bankruptcy handle personal loans?

| Feb 25, 2020 | Bankruptcy |

Money can cause a range of feelings in different people. Some may feel that the amount of money they have means that they are successful, and others may not feel that money is the most important thing in the world. Still, if Missouri residents are struggling with serious debt, the topic of money can make them feel stressed and uneasy. They may have taken personal loans from friends or family in efforts to help their affairs, but they may still be looking into bankruptcy.

Though taking personal loans is an option that could be helpful in some cases, it does not always have the effect that individuals need. As a result, some parties may end up owing money to creditors and to friends and family members who provided them with loans. Because they do not have the ability to pay anyone back, they may wonder whether personal loans are discharged in Chapter 7 bankruptcy.

The short answer is that personal loans can be discharged through Chapter 7 in most cases. Of course, the details of an individual’s case can have considerable influence on exactly which debts are discharged and how the overall case goes. As a result, it is important to thoroughly assess the specific circumstances of one’s financial affairs before making any major decisions.

If Missouri residents are considering Chapter 7 bankruptcy for their debt issues, they may want to gain information that applies to their circumstances. It can be difficult to know exactly how a case will play out, but if parties consult with attorneys experienced in this area of law, they can gain personalized insight into their specific affairs. It may prove useful to interested parties to reach out to legal professionals for reliable information.