Can you actually legally walk away from debt as commercials claim?

I keep hearing various commercials about how you can legally walk away from debt. Is this true? I'm sure there's a catch, but what? What are the rules if it is possible and how does the process go?

Can you actually legally walk away from debt as commercials claim?
Of course you can walk away from debt, by financially ruining yourself. Basically your credit score will suffer the hit. You could declare different types of bankruptcy, or you could simply stop paying, get turned over to credit agencies, when the credit agencies call, tell them they are causing you undo stress and that you demand they stop calling you. By law they must stop calling you then, or go get a lawyer pro-bono and have them send a letter :). You could also try debt consolidation (combining all your loans). You could also negotiate all your debts and close the accounts by "paying less then is due". While this hurts your credit its not as bad as going BK.





Anyways, if you have debts that are noncollectable then what can they do to go after you. Of course if you own a home or other levy-able assets they can lien those or repo them. Its not illegal to run out of money.
Reply:Within some constraints, you can often walk away from debt that it would not be reasonable to expect anyone to pay under like circumstances.





The term is bankruptcy that you are looking for, but foreclosure is another form. Depending on your place of residence, some courts will require you to continue to pay some of your debt, or most of it. For instance in Ontario Canada you may be allowed to keep your house with its mortgage still payable. But you may be required to sell a lot of things and make payment from that.





I have known people to walk away from 15000 in debt without selling anything, without having any repos.


But I have also seen people walk away with next to nothing.





The courts are in general hostile to people who get into a second or third personal bankruptcy. But one of my uncles had 3 business bankruptcies over 25 years, and the court was not hostile, because the bank in each case had precipitated the bankruptcy.





Another form of walking away. a proposal is made to make immediate repayment of some fraction of all creditors' claims, and if accepted, the rest is erased. This can be less harmful than a bankruptcy.
Reply:Every debt has it statue of limitation where they can write-off your debt after certain amount of time and this differ from each state. But I dont want to go this route. It's better to settle your debt with creditors. If you don't want to do it yourself, there are a lot of debt companies that are offering debt negotiation and settlement with small fee. The one I highly recommend is http://www.loansmarter.com/creditsolutio... They offer free consultation regarding debt problem. This year alone they already settled $200 million in debt from their US clients.
Reply:You can legally walk away from debt by filing for Chapter 7 bankruptcy...as far as I know, that's the only legal way.





Debt settlement "may" enable you to settle your debts at around 50%....This process will destroy your credit rating and may trigger a lawsuit if any creditors refuse to settle.
Reply:To Be honest,It will take a little time to find the answer for the question of yours.have a look at the resource here http://www.DebtFreetips.info/debt-free.h... for your reference .