Declaring Bankruptcy

The current economic option is forcing more and more people to consider declaring bankruptcy as an option.

It may be the right choice for you, but it will not automatically wipe away all debts.

Consult an attorney for definitive answers, but here are debts that may still remain after declaring bankruptcy:

Taxes owed to the state and to the Internal Revenue Service.

Child Support

Alimony

Student Loans

Criminal Fines

Parking Tickets

Drunk Driving Injury Awards against you

These are just SOME of the debts that you may still owe after declaring bankruptcy.

Chapter 7 bankruptcy requires that many of your assets be sold to satisfy your debts, and most of your debts will be discharged after you file – but not all of them, as mentioned above.

A Chapter 13 bankruptcy is designed to allow those with a regular income to repay some or all of their debts. It stops debt collection activity and allows a debtor to keep most of their assets. If the debtor earns less than the state minimum, they may have a plan that lasts for three years, and if they owe more than the state minimum, they may have a plan that lasts up to five years. Chapter 13 allows some individuals to keep their homes under certain circumstances.

You definitely will want to consult with a bankruptcy attorney before deciding to declare bankruptcy and before selecting which bankruptcy option is right for you.

Tags:bankruptcy attorney,bankruptcy chapter 7,chapter 13 bankruptcy,declaring bankruptcy

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