Your Guide to Debt and BankruptcyYour Guide to Debt and Bankruptcy

About Me

Your Guide to Debt and Bankruptcy

About 10 years ago, I secured my dream job with one of the largest corporations in the country. The job came with a substantial increase in pay and I soon looked for a large house for my family. After living the life I dreamed of, I was let go from my current position. I had a large amount of savings, but the economy took a turn for the worse and savings were quickly drained. I soon became stressed about finances. I could not pay the mortgage and bill collectors started to call my house. I refused to be defeated though, so I met with a bankruptcy attorney instead. I live a much simpler life now with my family, and I want you to know that financial stress does not have to affect you for years. Read my blog to learn about bankruptcy, debt laws, and how to hire an attorney.

4 Debts Chapter 7 Bankruptcy Won'T Pay

One of the things you may have is a lot of financial obligations that you just can't pay. You may have lost your job or could be going through a painful divorce. It's possible to regain your financial stability by filing for Chapter 7 bankruptcy. Doing so will allow many of your debts to be gone, but there are also several that won't be. Being aware of the money you'll need to repay may be helpful to you.

Debt #1: Student loans

If you've borrowed money to get your education, this is known student loans. It's essential to repay these because filing for Chapter 7 bankruptcy won't get rid of this debt.

In fact, failure to make the necessary payments could end up costing you more in interest charges, penalties, and fees. 

Debt #2: Alimony

Do you have to pay support to your wife due to a divorce? If so, this money will need to be paid because you just can't avoid paying alimony if you're in this position.

This is a fee the court has set into place and the only way to alter or change it will involve going through the legal system to do so.

Debt #3: Income taxes

It's critical to file your taxes on an annual basis to abide by the tax rules in the United States. If you owe money, it will need to be paid within the specified time limit.

This is another debt that won't be discharged if you're successful at filing a Chapter 7 bankruptcy but it's possible to pay the Internal Revenue Service with installments. 

Debt #4: Debts after filing

If you go and charge a lot of things on credit cards after filing for bankruptcy, you'll have to pay these. Keep in mind any loans you take out, or debt of this type won't be covered once you have begun this legal process.

You'll want to be sure you have the money on hand to pay for any of these expense types.

Working towards having a more stable financial future is sure to be foremost on your mind. This can be extremely difficult to do if you owe more money than you're making for any reason. The key to getting through this tough time may rest in filing for this legal assistance. Be sure to work closely with your bankruptcy attorney today to assist you in completing this process.