The time when you may find yourself in such a bad financial condition that you truly feel there’s no way out, short of filing bankruptcy. There are surely cases where filing bankruptcy is your best or only option. However, bankruptcy is a serious situation which requires considerable research and thought before you proceed. It is more difficult for an individual to file for bankruptcy due to the recent changes to bankruptcy laws. There are many caveats and the law is quite complex which exclude certain types of debts from being discharged. Before you commit yourself in court for these reasons, you’ll want to get some straight answers to bankruptcy questions. Let’s take a look at some situations that may apply to your case.
There are several types of debts which the court may not allow to be discharged in your bankruptcy filing. For example, if you have obtained a government funded or guaranteed loan for education, you will still be required to repay this debt. The court will not discharge this obligation If you owe alimony or child support. Certain debts owed for injuries or death as a result of a DUI will also stand after bankruptcy. Condominium fees you owe will also not be discharged in some cases. There are also tax claims which are not dischargeable. There are also tax claims which are not dischargeable. You may make your bankruptcy pointless if you are having all of these debts. This list is certainly not comprehensive, so you’ll do well to consult an attorney or simply do some researches on getting some of your answers to bankruptcy questions before you incur yet more debt.
Bankruptcy will not help you if you have a criminal conviction, under title 18 of the United States criminal code, where you have been ordered to pay restitution. This debt will stand.
As your transportation is essential many people facing bankruptcy erroneously assume that they are allowed to keep vehicles which are financed. This is no longer true. If you have a couple of vehicles for your household which are financed, the lender has the right to repossess both vehicles. Bankruptcy will not protect you.
Here’s one more common, but surprising answer to bankruptcy questions. If you’re paying a mortgage on your home, this debt also survives bankruptcy. Your creditors have the right to challenge you in a separate court proceeding on a debt which they feel they should be allowed to collect, regardless of the bankruptcy. They can sue you to validate their claim, costing you more money and the risk that you will be stuck with this debt.
Do your research and get all of your answers to bankruptcy questions, before you opt for filing or if you’re considering bankruptcy. There are many other options that may well serve you better.
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