Generally, anyone can file for bankruptcy. However, not everyone qualifies for a particular kind of bankruptcy. Bankruptcy is intended to help those who have found themselves in financial trouble with no real way to repay it. You cannot file for bankruptcy to defraud your creditors or run up a large amount of debt with the intention of filing for bankruptcy afterwards.
Many people have a negative impression of bankruptcy but there are a number of reasons why people file: Medical bills that become impossible to handle, divorce, illness or death of a loved one and unexpected circumstances that leave one with owing more than they can possible pay back.
Debts That Can Be Discharged
If you’re considering bankruptcy as an option, it’s important to understand which debts can be discharged and which will remain your responsibility. In most cases, the following are able to be discharged: Credit cards, department store cards, personal loans, payday loans, gas cards, and other unsecured loans, unpaid utility bills, medical bills, emergency room visits and treatments. Lawsuits, judgements and foreclosures are generally allowed to be discharged.
Debts That Cannot Be Discharged
Child support, spousal support, money or credit obtained by fraud and government debts, such as taxes and fines, are generally excluded from a bankruptcy filing. Student loans cannot be discharged unless the debtor can prove that making payments would cause undue hardship, both at the time of filing and into the future. Debts that you fail to list in the original bankruptcy or fail to add by amendment in a timely manner will not be discharged nor will monies owed due to injury or death caused by the debtor while intoxicated.
If your financial situation has become too difficult to bear and you need to know what options you have, please call our office for your FREE consultation. 731.424.3315.