Wednesday, September 28, 2016

Are There Some Debts Bankruptcy Won’t Eliminate?

The whole point of filing bankruptcy is to eliminate debt, so you have fewer things to pay each month and can get some breathing room. The debt you seek to eliminate is usually weighing you down and making it hard to pay all of your obligations on time. But, if you were just able to wipe out some of your monthly payments, you might be in a better place and more capable of paying for the things you really need to survive. So it is important to know what debts you can discharge (eliminate) in bankruptcy, and what debts will still be due even if you file a case.

Like all good rules, those that apply to bankruptcy have exceptions. When thinking about what debts are excepted from the general rule that bankruptcy wipes the slate clean, the following are the most common examples of non-dischargeable debt:

         Child support obligations.

         Student loan debt.


         Debts incurred under false pretenses, or with the intent to never pay them.

         Debts that have been reaffirmed.

You have a lot of choices to make when you decide to file bankruptcy, and one of those decisions will impact whether certain debts are discharged. For instance, if you want to keep you house or your car, you may have to sign a reaffirmation agreement and keep making the payments. Then, when your case is over that particular debt will not be discharged and if you default on the payments the lender can pursue legal and other collection remedies against you. You also have to take a look at just what type of debt makes up most of your loans, if the majority of what you owe is tied to child support or a student loan, bankruptcy may not be the answer for you. In order to learn more, and to find out if bankruptcy can help you, call us today.  A successful bankruptcy case starts with good planning, and this requires a thoughtful examination of your needs and where you hope to stand after filing. We will examine your specific debt situation and let you know your options, and help you make a decision that meets your needs.

For more information about what debts are still due after bankruptcy, call us today or reach us online at We offer appointments at multiple locations for your convenience and can schedule a time to visit with you soon.


No comments:

Post a Comment