Bankruptcy Does Not Eliminate All Debt

Any good Fort Worth bankruptcy lawyer will tell you that filing for bankruptcy does not eliminate all debt. How much debt gets eliminated depends upon whether you file for Chapter 7 bankruptcy or Chapter 13 bankruptcy.

For example, a Chapter 13 bankruptcy discharges takes care only those debts provided for in the repayment plan. Additional exceptions to a Chapter 13 bankruptcy discharge include spousal and child support claims, educational loans, drunk driving liabilities, criminal fines and restitution obligations, and long-term obligations such as a home mortgage that go longer than the repayment plan.

Chapter 7 bankruptcy does not discharge debts such as debts not listed on the schedule at the beginning of the bankruptcy case, most student loans unless the repayment causes undue hardship, recent federal, state, and local taxes, child support, alimony, government-imposed restitutions, fines, and penalties, court fees, drunk driving liabilities, and debts not dischargeable in a previous bankruptcy due to fraud.

If the creditor objects during the case and proves the debt fits one of the following categories then it does not get discharged: debts from fraud, debts for luxury goods or services incurred sixty days before filing and cash advances sixty days following, debts from willful, malicious acts, debts from embezzlements, larceny, breaches of judicial duty, and, in certain cases, debts from divorce settlements and court decrees.

A common misconception is that people have to give up all their property with a Chapter 7 bankruptcy when that even is actually quite rare. Debtors more often have to give up items such as cash, bank accounts, stock bonds, non-retirement account investments, and a vacation, or second, home.

Home equity, motor vehicles, public benefits, damages awarded for personal injury, reasonably necessary household appliances, clothing, house goods and furnishings.

A good Fort Worth bankruptcy lawyer helps you sort through all this for your particular case.



For experienced, knowledgeable and trustworthy bankruptcy assistance, contact the attorneys from www.legalhelpers.com. Call toll-free 800-260-1402 today for your initial free consultation or come into one of their 100 offices across the country.