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Is there a difference between forgiving debt and discharging debt?

To the IRS and many collection agencies, to forgive debt means that while you don’t have to repay the debt, there is a possibility that you will still owe income tax on it! In bankruptcy, having debt discharged means that you are exempt from having to pay all or part of the debt you owe–depending on the type of bankruptcy claim you file. The whole point of bankruptcy is to give people a second chance and a fresh start!

Coming to terms with your debt is difficult thing to do. Many clients come into my office thinking they could have done something differently to avoid bankruptcy. But in most cases the circumstances that lead to debt are beyond your control, such as the loss of a job or unexpected medical bills!

Although collection agencies may have a somewhat distorted view of what forgiveness is, they are on the right track in their terminology! Friends, family members, and employers need to show forgiveness to people who are in debt or filing bankruptcy. More importantly though, you need to be able to forgive yourself! You cannot blame yourself or let others place the blame on you. Contact me for a free consultation. By filing bankruptcy you are doing the responsible thing by taking charge of the situation!

David Lozano, Attorney at Law
Contact me today for a free consultation
800-974-5680/Se habla español

The Law Offices Of David Lozano - Bankruptcy Attorneys - Bankruptcy Lawyers.
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