barrett bankruptcy book

What bankruptcy can do

Q. What bankruptcy can do for me? In a Chapter 7 bankruptcy will cover debts like medical bills, credit card charges, personal loans, (in very rare circumstances) student loans, business debts, auto accident claims, attorney fees, money owed over lease agreements, utility bills.  In a Chapter 13 case the most common types of debts that are discharged in a Chapter 13 case are credit card debts, medical bills, personal loans, older nonpriority tax income obligations, utility bills, and most lawsuit judgements. There are some kinds of debts that that are called “nondischargeable” and that you will still have to pay back no matter what.  Wondering what kind of bankruptcy to file WATCH the video.

What Bankruptcy Can Do:
If you are facing serious debt problems, bankruptcy may offer a powerful remedy. Here are some of the things filing for what bankruptcy can do:

Wipe out credit card debt and other unsecured debts. Bankruptcy is very good at wiping out credit card debt.   Besides credit card debt, you may have other unsecured debts, and bankruptcy can wipe these out as well.

If you file for Chapter 13 rather than Chapter 7, you may have to pay back some portion of your unsecured debts. However, any unsecured debts that remain once your repayment plan is complete will be discharged. (See Your Debts in Chapter 13 Bankruptcy.)

Stop creditor harassment and collection activities.

Eliminate certain kinds of liens.

What Bankruptcy Can’t Do:

Prevent a secured creditor from repossessing property. A bankruptcy discharge eliminates debts, but it does not eliminate liens. So, if you have a secured debt (a debt where the creditor has a lien on your property and can repossess it if you don’t pay the debt), bankruptcy can eliminate the debt, but it does not prevent the creditor from repossessing the property.

Eliminate child support and alimony obligations. Child support and alimony obligations survive bankruptcy — you will continue to owe these debts in full.  In Chapter 13, your plan will have to provide for the domestic support debts to be repaid in full.

Eliminate most tax debts. Eliminating tax debt in bankruptcy is not easy, but it is sometimes possible for older debts for unpaid income taxes.

Eliminate other nondischargeable debts.

Work with your experienced lawyer to help you know what kind of debts can and cannot be eliminated in your own bankruptcy case.

 

Leave a Comment