If you have significant debt and you struggle to make ends meet, a bankruptcy filing can be your best solution. After your bankruptcy case is complete, you may be free of debt; however, you might still have to pay some bills. Because bankruptcy does not wipe out all kinds of debt, you must think about your financial obligations now to know where you will stand down the road.
Bankruptcy Can Wipe Out a Lot of Debt
With a bankruptcy discharge, you will be free from paying a lot of debts. You may benefit from filing a bankruptcy claim if you cannot manage your credit card debts, medical bills, payday loans, personal loans, collection agency accounts, and past-due utility bills. A skilled Hagerstown, MD bankruptcy attorney can help you get rid of other financial obligations like some tax penalties and overdue rent.
Certain Debts Remain Payable After Bankruptcy
After a bankruptcy discharge, you may still be responsible for some of your debts. The financial obligations that survive after bankruptcy include court-ordered spousal support, child support, the majority of student loans, government fines and penalties, as well as recent government taxes.
In addition, a bankruptcy cannot eliminate debts for intentional injury to an individual and those for personal injury or death due to driving while under the influence of alcohol. Other non-dischargeable debts include some condo dues, pension-plan-related debts, and court fees.
Can You Be Debt-Free After Bankruptcy?
Chapter 7 bankruptcy can eliminate a lot of your debt. However, Chapter 13 bankruptcy can also be a better option for other people. This type of bankruptcy allows for the consolidation of debts, letting you pay them off over time, often for 3-5 days. A Chapter 13 filing can stop car repossession and mortgage foreclosure, allowing you time to catch up on your missed payments. Also, it lets you keep the property that Chapter 7 does not protect. And because Chapter 13 can cram down secured debts, the money you owe to the property’s value will be reduced.
Not all people can benefit from bankruptcy. However, filing for bankruptcy might offer a way to become free of debt. To get expert advice and guidance on how to set up a better financial future, speak with a bankruptcy attorney who is willing to help you meet your goals. The best attorney to work with prioritizes your best interest and helps you pick the bankruptcy option that fits your circumstances.
