What Debts Will Filing Bankruptcy Help With?
Filing bankruptcy is a huge decision, and it should not be taken lightly. One of the biggest and most important considerations of filing bankruptcy is whether or not it will relieve you of enough debt to be worthwhile. This may seem obvious, but sometimes people are unaware of the fact that bankruptcy won’t necessarily relieve you of all debts. It shouldn’t be treated like a get out of jail free card. Let your bankruptcy lawyer help you look over your debts and help you decide what bankruptcy, if any, you should file for. Today we’ll go over what filing bankruptcy cannot do for you.
Child Support and Alimony
Child support and alimony will not be discharged by either Chapter 7 or Chapter 13 bankruptcy. These debts absolutely must be paid, so if this is your primary issue, you may reconsider bankruptcy.
The majority of tax debts are never discharged. In certain situations, you may be able to discharge your regular income tax debts. This is a rare situation, and you’ll have to appear before a court and prove to them that this should be discharged. Talk to your bankruptcy lawyer about whether this is possible or worthwhile.
Fines and Penalties from Breaking the Law
If you owe money for illegal activities, then you’ll have to pay it. These are debts that are never discharged, no matter the situation. If you injured or killed someone while driving intoxicated, you will not be able to discharge debts caused from this situation either.
In most cases, student loans will not be discharged. There are certain exceptions to this rule. You must meet the criteria for undue hardship to have these discharged. This shows that you are unable to pay these loans and that you are highly unlikely to ever be able to pay them in the future. It is difficult to convince a court of undue hardship, so make sure to consult with your bankruptcy lawyer.
Recent Luxury Charges
If you have recently purchased non-essential or luxury items, they will more than likely not be discharged. If a creditor disputes your bankruptcy, they will most likely win the dispute if the purchases were made in a certain period of time previous to you filing bankruptcy. It’s never a good idea to try to max out your cards and then file.
Let RGG Law Help You with Filing Bankruptcy
Don’t go through the process of filing bankruptcy alone. Let the bankruptcy lawyers from RGG Law protect your interests. We can advise you on your options and guide you on the right path to being debt free. Contact us today to schedule a free consultation.