If you are considering filing for bankruptcy, it can be a difficult time. It might be difficult for a lay person to understand what dischargeable bankruptcy debts are, so when you enter the process, you might not know what debts can – and cannot – be discharged.
Most people have a basic understanding that student loans and some taxes will stick with you even if you file bankruptcy, but there are other debts that can’t be discharged.
In general, there are a handful of debts that will stick with you until they are paid off and it’s best to know that before entering into the bankruptcy process. It’s a lot to sort through, and the experts at Mina Nami Khorrami LLC are here to help you understand bankruptcy debts. Read on:
In general, some taxes, student loans, child support and alimony, fraud and criminal restitution, condo and homeowner’s association dues will stick with you until paid after a bankruptcy filing. These bankruptcy debts cannot be discharged for a myriad of reasons.
Generally, the kind of bankruptcy debts that can be discharged include but is not limited to: credit card bills, medical bills, cell phone bills, personal loans, utilities, leases, and some secured debts such as mortgages and auto loans if you do not want to keep the property.
Many people have confusion and when they call our experts we try to explain the general process up front. And the rules are NOT the same for a private citizen vs. a corporation, so that is important to note as well.
For example, generally a corporation files Chapter 11 and an individual files Chapter 13. Chapter 7 is for both corporations AND consumers, however, there might be ways for a business to take advantage of a Chapter 13 filing.
Our legal experts want you to understand the consequences of filing for bankruptcy and what bankruptcy debts you will be relieved of from the beginning of the process. There are many deadlines and other issues, so you will need proper legal representation should you need to file bankruptcy.
Just like most major decisions, you need to plan for bankruptcy. Don’t try to do it alone.
The legal experts at Mina Nami Khorrami LLC are here to help you understand bankruptcy debts and the bankruptcy process.