Understanding Limitations in Bankruptcy

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.

Reference:
http://www.nolo.com/legal-encyclopedia/chapter-7-13-bankruptcy-limits-benefits-30025.html

By | 2017-12-13T02:16:28+00:00 July 9th, 2013|Bankruptcy|Comments Off on Understanding Limitations in Bankruptcy