Can Chapter 7 Bankruptcy Discharge Personal Loans?

The short answer is yes.  Virtually all of your unsecured loans can be discharged through Chapter 7 bankruptcy.  Your personal loans are unsecured loans as long as you have no collateral attached to them.

Even if your personal loan is secured, it can still be discharged through Chapter 7.  However, your creditor may repossess the collateral.  In order to keep your secured property (e.g. your car) you should consider options such as reaffirmation agreements-your creditor does not repossess the collateral as long as you pay a monthly bill.

If you have any questions about bankruptcy, please contact 1st California Law at (949) 735-8499 for a free attorney consultation.

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