You may find yourself in such dire financial condition that you actually think there's no way out, short of filing bankruptcy. There are definitely situations where filing bankruptcy is the only option.
However, bankruptcy is serious, which needs a lot of research and thought before you do it. New modifications to laws related to bankruptcy have made it more difficult for people to apply for it. The law is very complicated and there are many cautions, which exclude some kinds of debts from being discharged.
This means you will need to get some direct answers to bankruptcy questions before you go to court. Let's take a look at some situations that may apply to your case.
In your bankruptcy filing, there are many types of debts, which the court might not allow to be discharged. For example, if you have obtained a government funded or guaranteed loan for education, this debt will have to be repaid. If you owe alimony or child support, the court will not discharge this responsibility.
Certain debts owed for injuries or death as a result of a DUI will also stand after bankruptcy. In some situations, condominium fees you owe will also have to be paid. There are also tax claims, which are not dischargeable. As you can see, there is no point in filing for bankruptcy if you have all those debts. This list is certainly not comprehensive, so you better visit an attorney or just do some research on getting some of your answers to bankruptcy questions before you incur yet more debt.
Under title 18 of the United States criminal code, if you have a criminal conviction, where you were required to pay restitution, bankruptcy will not help you. This debt will remain.
Many individuals facing bankruptcy erroneously think that they can keep their vehicles, which are financed when your transportation if vital. This is not true anymore. If you have two vehicles for your household which are financed, the loan company can repossess both vehicles. Bankruptcy will not protect you.
Also, If you are paying a mortgage on your residence, this debt also survives bankruptcy.
Your creditors can challenge you in a separate court proceeding on a debt which they feel they should be allowed to collect, no matter if you filed for bankruptcy. They can sue you to validate their claim, costing you more money and the risk that you will be stuck with this debt.
If you're thinking of bankruptcy, make some research and get all of your answers to bankruptcy questions, before you decide to fil. There are many other alternatives that might well help you.
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