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Understanding Limitations in Bankruptcy

Posted By Allmand Law Firm, PLLC || 9-Jul-2013

What are the Limitations of Filing Bankruptcy?

Many refer to bankruptcy as being a powerful financial tool that can help eliminate or restructure your finances. When you are considering filing for protection, you should know what debt is eligible for discharge since all debts cannot be wiped out. Certain debts, such as credit card debt and medical bills, may be wiped out in either Chapter 7 or Chapter 13 bankruptcy.

Bankruptcy can help wipe out unsecured debts such as credit card debt, medical bills, personal loans, and even payday loans. Filing can stop collection attempts from creditors including repossession, foreclosure, and disconnection of utility services. Creditor harassment is a common problem dealt with by debtors who are seeking alternatives in resolving financial obligations. In some cases, bankruptcy may help eliminate certain liens, but the process may vary depending on the chapter filed and the unique circumstances of the individual.

Bankruptcy may not wipe out all debt obligations such as child support and alimony. You may be able to use Chapter 13 to help you make back payments in relation to these obligations. Student loan debt and back income taxes can be eliminated but with strict limitations. If you fail to make payments on a secured loan the property could be reposed or foreclosed. If you forget to list a debt when you file, it may not be eligible for discharge. Debts related to personal injury or death due to driving under the influence may not qualify for discharge. For more detail on personal injury feel free to review this resource.

Withholding details about your finances, providing false information or hiding assets may jeopardize the outcome of your case. Discuss questions and concerns with a qualified Dallas bankruptcy lawyer.


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