Not all debts are eligible for bankruptcy relief. Some debts are not always subject to discharge under the bankruptcy code; these may include taxes, child or spousal support obligations, and student loan obligations. These debts, as well as others, could remain even after a bankruptcy occurs.
Bankruptcy relief for individuals, businesses, farmers, and even fisherman are found in different sections of the bankruptcy code. Each section pertains to a different aspect of the law and may or may not apply to your particular instance. Becoming educated on the advantages and disadvantages of each section and arriving at an informed decision can make all the difference in the world.
It may surprise you that not everyone is eligible for bankruptcy. Depending upon your particular situation, bankruptcy can eliminate a portion or all of your debt obligations. Bankruptcy guidelines can be strict, but persons in sincere need can generally qualify for protection.
Filing for bankruptcy can have a negative impact upon your credit rating, which can last for years. Before filing for bankruptcy, entertain all possible alternatives; debt consolidation could be a way to stabilize your finances, help you get back on your feet, and avoid bankruptcy altogether. If debt consolidation is more appropriate, be sure to use a licensed debt consolidation company with a reputable track record.