When it comes to being able to pay all of your debt, this may be difficult to do all of the time. Financial problems can arise and make it difficult for you to meet all of your obligations at some point in life. You may want to file for Chapter 7 bankruptcy, but doing so may not pay all of your debt. Knowing the things that filing for this legal process won't accomplish may be helpful to you if you're in this situation.
Paying off student loans
Filing for this type of bankruptcy won't assist you in paying off any outstanding student loans that you may have. The only way that these loans would be paid off is if you were capable of proving you had "undue hardships" and this can be difficult to do.
This means you must prove that you can't repay the loans now and will be unlikely to do so at any point in the future.
If you have secured debt that you want to get discharged by filing for this type of bankruptcy, you may be able to get rid of the debt, but could be faced with a lien from the creditor. Being eligible for this type of bankruptcy won't stop your property from attempting to be repossessed.
Eliminate legal obligations
If you've been ordered by the court to pay child support or spousal support, these must be paid and won't be affected at all by completing a Chapter 7 bankruptcy. Usually, if there has been a court order put into place regarding a payment, it must be made regardless of your financial situation.
Reduce personal injury debt
If you've been involved in a car accident that was your fault and due to you being intoxicated, you can't get rid of this personal injury debt. It is fully your responsibility to pay for any injuries your negligence may have caused.
Resolve forgotten debts
Bankruptcy will only discharge debts that you have listed when filing for this process. If you think of other loans later, but you forgot to list, these can't simply be added to the list.
Finally, getting rid of financial obligations that you can't meet will provide you with an increased peace of mind. Be sure to discuss this process with your bankruptcy attorney to learn what will and won't be discharged during this process. (For more information, you can contact Harold Jarnicki Attorney At Law)