Declaring bankruptcy is a tough decision, and it’s important to be fully informed before you make that choice. Ziegler Law Firm handles bankruptcy cases frequently.
We know that debts will be resolved to some extent by declaring bankruptcy, but bankruptcy doesn’t handle everything.
Bankruptcy is a decision people make when they are overwhelmed by debt. There are some debts that are not covered by bankruptcy.
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Child support and alimony are never discharged in bankruptcy. Child support is considered a priority debt, and goes to the top of the list of debts to be paid.
Being behind on alimony or child support will not be resolved by declaring bankruptcy. This doesn’t mean that bankruptcy can’t help you you’re your debt if you owe alimony or child support. Chapter 13 will allow you to organize your debts, and you can include past child support in your bankruptcy repayment plan.
Penalties and fines you’ve incurred for breaking the law are also not discharged during bankruptcy. Any court fees, fines, or restitutions still have to be paid.
If your crime was intoxicated driving, and someone was injured, there may be more than just fines involved. You will also still have to pay for any debts you incurred that came from causing someone’s death or injury,
Certain tax debts are also not dischargeable in bankruptcy. If you have income tax debts, they are not dischargeable unless you prove an exception. If this is proved, you can have your income taxes discharged along with your other debts.
There are some debts that are automatically discharged, but that a creditor can dispute. If the creditor disputes, you may need to pay. This includes any debts that come from malicious acts, embezzlement, larceny, or fraud.
It also includes debt you haven’t listed on your bankruptcy papers, so make sure that you are aware of and have reported all of your debt when you file for bankruptcy.
There are also some debts that are typically not discharged, but if you prove an exception, you can get them added to the covered debts. As previously mentioned, income tax debt is one of these.
Student loans are another example. With widespread student loan debt plaguing the country, this option is often overlooked but sometimes necessary.
At Ziegler Law Firm, we know exactly how to handle your bankruptcy case. If you feel that you need to file for bankruptcy, we can offer you the advice and counsel you need to handle the process appropriately.
