A Difficult Scenario Called Bankruptcy
Bankruptcy is a legal proceeding in which a debtor declares his or her inability to pay consumer or business debts as they become due.
There are cases where you find yourself in a hard financial condition that you feel there?s no way out and filing bankruptcy is your only option. It is a serious situation which requires research before you proceed. Right now it is more difficult to file for a bankruptcy due to the recent changes in the law. That’s why you’ll have to get some answers to bankruptcy questions before committing in court.
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 discharge 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 pointless. This list is certainly not comprehensive, so you’ll do well to consult an attorney or simply do some research on getting some of your answers to bankruptcy questions before you incur yet more debt.
A lot of people facing bankruptcy still assume that they are allowed to keep vehicles that are financed, which is no longer true. A lender has the right to repossess your vehicles if you have a couple of vehicles that are financed. In this case, bankruptcy cannot protect you.
Another common thing is if you are paying a mortgage on your home, the debt also survives bankruptcy.
Regardless of 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. They can sue you to validate their claim.
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 better.
Article by Chris B, you can find more about him on his profile.
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