why bankruptcy is good

Pros and cons of bankrupcy

If you are considering bankruptcy you are most likely look at all your options – that’s smart.  It seems to easy to find out the pros of bankruptcy like what a bankruptcy will cover but what won’t cover is the next logical question.  What bankruptcy wont cover are nondischargeable debts.  In the world of bankruptcy there are debts that get wiped out or “Dischargeable” debt and debts the survive the bankruptcy process or “nondischargeable” debts.  Nondischargeable debts are certain kinds and classifications of debt that will not go away after a bankruptcy case – be it Chapter 7 or Chapter 13.  These kinds of debts include child support, certain tax debts, criminal fines and penalties. If a debt is nondischargeable then once your bankruptcy is over, you will still have to pay those debts back.  The creditor can collect on the debt including garnishing wages or placing liens on property.  Knowing what kinds of debts you have is very important to know before you file for bankruptcy so you will know if the debt will be valid after the case is over with.

You can discharge debts like credit card debt, medical bills, debts from car accidents, personal loans, etc. These debts will be wiped out or paid back during your bankruptcy. Some debts that you will have to provide an exception to are student loans and regular income tax debts, but are not easily discharged.  In fact to discharge these kinds of debts extra steps and motions or lawsuits need to filed during your bankruptcy case to see that they are discharged.  You will need to discuss with your attorney at the beginning of your case the steps needed to see that some of these debts are actually discharged in your case. What bankruptcy wont cover.

An experienced bankruptcy lawyer can advise you on the nature of your debts and the possibility that they will be discharge or not discharged in a bankruptcy case.  Looking for bankruptcy help in Utah then contact us to set up an appointment.  In other parts of the country I suggest you look for a local attorney on the NACBA website.

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