You may find yourself in such terrible financial condition that you actually feel there's no way out, short of filing bankruptcy. There are surely cases where filing bankruptcy is the only option.
However, bankruptcy is a serious situation, which needs a lot of research and thought before you do it. Recent modifications to laws related to bankruptcy have made it more difficult for people to file for bankruptcy. The law is quite complex and there are a lot of caveats, which exclude certain types of debts from being erased.
This means you will need to get some direct answers to bankruptcy questions before you go to court. Let's take a look at some situations that may apply to your case.
There are several types of debts, which the court may not allow to be discharged in your bankruptcy filing. For example, if you have obtained a government funded or guaranteed loan for education, you will still be required to repay this debt. If you owe child support or alimony, the court will not erase this responsibility.
Certain debts owed for injuries or death as a result of a DUI will also stand after bankruptcy. In some cases, condominium fees you owe will also have to be paid. Also, tax claims can not be discharged. As you can see, there is no point in filing for bankruptcy if you have all those debts. This list is certainly not comprehensive, so you better consult an attorney or simply do some research on getting some of your answers to bankruptcy questions before you incur yet more debt.
Under title 18 of the United States criminal code, if you have a criminal conviction, where you were ordered to pay restitution, bankruptcy will not help you. This debt will remain.
Many people facing bankruptcy incorrectly assume that they are allowed to keep vehicles, which are financed when your transportation if vital. This is no longer true. If you have two vehicles for your household which are financed, the loan company can repossess both vehicles. Bankruptcy will not protect you.
Here's another common, but surprising answer to bankruptcy questions. If you're paying a mortgage on your residence, this debt also survives bankruptcy.
Your creditors may challenge you in a separate court proceeding on a debt which they believe they should be allowed to collect, regardless of the bankruptcy. They can sue you to validate their claim, costing you more money and the risk that you will be stuck with this debt.
If you're considering bankruptcy, make some research and get all of your answers to bankruptcy questions, before you decide to fil. There are a lot of other options that might well help you.
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