You’re in a pretty tough spot with your finances right now. You have a lot of debt and you aren’t sure how you’re going to pay it, so you’re thinking about filing for bankruptcy. However, before you make that decision, you want to know: Will it discharge all of your debt?
Here’s some more information.
What Debt Cannot Be Discharged?
There are certain types of debt that are usually non-dischargeable, including the following:
- Child support
- Alimony
- Attorneys’ fees for alimony or child support
- Student loans
- Fines you owe to government agencies
- Different types of taxes
- Debts that were not on your bankruptcy petition, unless you told the creditor about your filing
- Criminal restitution debt
- Condo or cooperative housing fee debts
People usually file for bankruptcy when they are faced with dischargeable debt, like credit card debt, and they cannot pay it because of a job loss or another extenuating circumstance.
Chapter 7 vs. Chapter 13 Bankruptcy
While Chapter 13 bankruptcy may not be a choice, you will need to qualify for a Chapter 7 bankruptcy based on your income — and you might end up not qualifying. The Chapter 7 bankruptcy process usually lasts between four and six months, and you can use state exemptions to protect your assets. Liquidation is not normally required. With Chapter 13 bankruptcy, you can repay your debt within three to five years and liquidation is not required. No matter which one you choose, it’s best to get in touch with a bankruptcy lawyer for assistance.
Calling Richard P. Arthur for Bankruptcy Help
Richard P. Arthur, Attorney at Law, can help you determine if bankruptcy is the best move at this time. You can call 937-254-3738 for a consultation. He has nearly three decades of experience assisting clients in Dayton and Trotwood, as well as Montgomery, Greene, Miami, Clark, and Warren counties.