If your debts are building up and you are finding it more and more difficult to pay them off, then it may be in your best interest to file for bankruptcy. Even so, there are certain types of debts that are non-dischargeable, or in other words, cannot be eliminated with your bankruptcy filing. Read on to discover what debt does not go away with bankruptcy and how a seasoned Rockland County bankruptcy attorney at The Law Offices of Allen A. Kolber, Esq., can help you plan a way to pay them off.
What type of debt goes away with bankruptcy filing?
Whether you are filing for Chapter 7 or Chapter 13 bankruptcy, one of your main goals is likely to discharge your debt and receive a fresh start. Luckily, it is possible to relieve yourself of certain debts when declaring bankruptcy. Examples of such dischargeable debt include the following:
- Your debt from medical bills.
- Your debt from personal loans.
- Your debt from credit cards.
- Your debt from your leases or other contracts.
What type of debt does not go away with bankruptcy filing?
You must understand that not all of your debt will be cleared when you file for Chapter 7 or Chapter 13 bankruptcy. Such debts are called non-dischargeable debts, and examples include the following:
- Most of your debt from taxes or liens.
- Most of your debt from your student loans.
- Your debt from your alimony payments.
- Your debt from your child support payments.
- Your attorney fees from your child custody or child support dispute.
- Your debt from your fines by certain government agencies.
- Your personal injury debts from your drunk driving accident.
- Your debts owed to a victim of a personal injury accident that was your fault.
- Your criminal restitution from your convicted crimes.
- Your debts incurred by fraud.
- Otherwise, any debt that was excluded from your bankruptcy petition.
How can I pay off my non-dischargeable debts?
Say you chose to file for Chapter 13 bankruptcy. This type of bankruptcy will grant you protection from the bankruptcy court and thus allow you to keep your assets. With this, the bankruptcy court will require you to submit a plan of repayment for the next three to five years. This plan of repayment should state how you intend to catch up on your debts, such as your mortgage payments and your car payments, while creditors are stopped from their collection activities.
Simply put, your plan of repayment may help you figure out how to pay off your non-dischargeable debts. And if you require any further assistance, do not hesitate in consulting with a competent Rockland County bankruptcy attorney today.