The decision to declare bankruptcy is a difficult decision to make. People often worry about the lasting effects on their credit history and their ability to borrow in the future. However, sometimes, the advantage of being relieved of debt in a bankruptcy proceeding outweighs the disadvantages. In order to weigh the advantages and disadvantages for yourself, it is important to understand exactly which debts the bankruptcy clears and which remain under your responsibility.


Who can file bankruptcy?

Individuals can file for bankruptcy in accordance with Chapter 7 or Chapter 13 of the United States Bankruptcy Code. The bankruptcy of Chapter 7 requires the sale of the property not exempt from the debtor and the distribution of the returns to the debtor’s creditors. The Chapter 13 bankruptcy allows debtors a regular income to keep their property and face a debt payment plan to satisfy these debts during the course of 3 to 5 years.

Although most debts are met in the discharge of a Chapter 7 or Chapter 13 bankruptcy, there are certain debts that will likely remain with the debtor following the discharge of the bankruptcy, including:

  • Food and debts for the support of the children for the amounts that have not yet been paid;
  • Taxes : uncovered taxes usually remain with debtors after a bankruptcy discharge;
  • Government educational loans funded or guaranteed by the government : they are not discharged in the bankruptcy proceeding;
  • Debts associated with a criminal sentence : Debtors who have been ordered to pay back in certain criminal cases must still pay those debts after an individual discharge of the bankruptcy;
  • Debts incurred in some DUI claims : a debtor who injured or killed someone while driving under the influence of alcohol (DUI or DWI) is still liable for any financial damages awarded to a claimant in a claim arising from an accident;
  • Mortgages : long-term obligations such as mortgages may not be discharged in Chapter 13 bankruptcy proceedings; Y
  • The insured debts that have been reaffirmed in a bankruptcy of the Chapter 7 proceeding remain the responsibility of the debtors.

The degree to which bankruptcy gives a debtor a fresh financial start depends on specific individual debts. For example, if most of the individual debts are backed by government loans and without tax payments, then the bankruptcy will not relieve the debtor of his obligation.


A bankrupt Lawyer can help a debtor reach a fresh start

A bankrupt Lawyer can help a debtor reach a fresh start

An experienced Bankruptcy Lawyer will review all individual debts before the bankruptcy petition in order to advise the petitioner of the bankruptcy about which debts will remain under his responsibility after the bankruptcy. A bankrupt Lawyer can renegotiate debts that ordinarily could not be discharged or help the bankruptcy petitioner establish feasible payment plans so that the remaining debt is not overwhelming.

For all these reasons, it is important to contact an experienced bankruptcy attorney Lawyer to discuss your options and ensure that a bankruptcy will provide you with the fresh start you are looking for to alleviate, if not all, of your debt.


Speak Today with a Lawyer Qualified in Bankruptcy

Speak Today with a Lawyer Qualified in Bankruptcy

This article aims to be useful and informative. But legal issues can be complicated and stressful. A bankrupt Lawyer can attend to his particular legal needs, explain the law and represent him in court. Take the first step now and contact a bankrupt Lawyer near you to discuss your specific legal situation.

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