Bankruptcy Laws & Eliminating Debts
Bankruptcy can help people discharge and eliminate debts. However, it is important to understand filing for bankruptcy may not eliminate all of your debts. The bankruptcy laws can be quite complex with a lot of caveats. Recent amendments to the bankruptcy laws have made it more difficult for an individual to apply for bankruptcy and prohibits the elimination of certain debts. According to the new bankruptcy laws, the some of the following debts are not satisfied by bankruptcy proceedings:
- Government funded or guaranteed loan for education
- Any owed alimony or child support
- Debts owed for injuries or death as a result of a DUI
- Condominium fees
- Tax claims
- Any order to pay restitution as the result of a crime
If the majority of your debt is attributable to one or more of these situations, bankruptcy will do little to help you. If, however, your debt consists of elements outside of these, you may be in luck. Speaking with an attorney about your particular situation can help you identify whether bankruptcy is right for you.
Additionally, a lot of individuals facing bankruptcy erroneously believe that they can keep their vehicles, which are financed when your transportation if essential. This is not true anymore. If you have two vehicles for your household and those vehicles are financed, the loan company can repossess both vehicles. The bankruptcy proceedings alone will not protect you. For this, you need to have the advice of counsel to review the situation and plot the proper course of action. Consultations are very reasonable and most attorneys will entertain meeting times that will coincide with your work schedule.
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