You may find yourself in such frantic financial condition that you deeply feel there's no way out, short of filing bankruptcy. There are surely cases where filing bankruptcy is your greatest or only option. However, bankruptcy is a terrible situation which requires considerable research and thought before you proceed. Recent changes to bankruptcy laws have made it more difficult for an individual to file for bankruptcy. The law is quite complex and there are many caveats, which exclude certain types of debts from being discharged. For these reasons, you'll require to get some straight answers to bankruptcy questions before you commit yourself in court. 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. If you owe alimony or child support, the court will not secretion this obligation. Certain debts owed for injuries or death as a result of a DUI will also stand after bankruptcy. In some cases, condominium fees you owe will also not be discharged. There are also tax claims which are not dischargeable. You can see that having all of these debts may make your bankruptcy futile. This list is certainly not macro, so you'll do well to consult an attorney or just do some research on getting some of your answers to bankruptcy questions before you incur yet more debt.
If you have a criminal conviction, under title 18 of the United States criminal code, where you have been ordered to pay restitution, bankruptcy won't help you. This debt will stand.
Many folks facing bankruptcy wrongly assume that they are allowed to keep automobiles which are financed, as your transportation is essential. This is no longer true. If you have a couple of automobiles for your household which are financed, the lender has the right to repossess both vehicles. Bankruptcy will not safeguard you.
Here's an alternative common, but startling 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.
If you're considering bankruptcy, do your research and get all of your answers to bankruptcy questions, before you opt for filing. There are many other options that may well serve you greater.
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