Bankruptcy can mean a fresh start for your financial life. While a bankruptcy does help eliminate some debts, it doesn’t guarantee that all your debts will be discharged. Therefore, it is recommended that before you file bankruptcy, check with your bankruptcy lawyer in Cleveland about the debts that can be discharged and those that will survive a bankruptcy.
It is possible to eliminate credit card debts and other unsecured debts through bankruptcy. Usually credit card balance is an unsecured debt, unless off-course you have a ‘secured’ credit card. Unsecured for credit card means that the creditor has no lien on any property; and in case you fail to repay the debt, the creditor cannot repossess any item. When you file for Chapter 13, you may be required to pay some portion of the unsecured debts. But, unsecured debts that survive completion of your repayment plan stand discharged.
Bankruptcy can also put an end to creditor harassment. Serious harassment such as repossession of car or foreclosure of mortgage can be stopped upon filing for bankruptcy. Know your rights by discussing your situation with Rubinstein Law Firm, a noted Cleveland bankruptcy law firm.
Bankruptcy also helps eliminate certain liens provided your Cleveland bankruptcy attorney invokes certain procedures while filing the bankruptcy case. Talk to your Cleveland bankruptcy law firm how best you can avoid liens when filing for Chapter 7 bankruptcy.
Remember, bankruptcy cannot eliminate secured debts, taxes, child support, alimony, and student loans. If you file for Chapter 13, your plan should necessarily include repayment of these debts in full. It is, however, possible to find a remedy for some situations through Chapter 13. Seeking advice from your bankruptcy lawyer in Cleveland can help learn about situations where leniency can be expected.
Bankruptcy cannot eliminate liens in case of secured debts. So, a secured creditor has the right to repossess property in case of an unpaid lien. Similarly, only in exceptional circumstances where it can be amply proved that repaying a student loan will cause you extreme hardship today and in future, can a student loan be eliminated.
Bankruptcy cannot eliminate taxes. However, older debts for unpaid income taxes may be eliminated. Discussing your case with an expert Cleveland bankruptcy attorney will help you know more about the requirements and possibility of eliminating tax debts through bankruptcy.
In some cases, it is possible that the creditor succeeds in convincing the judge that certain debts may not be discharged. These debts usually include those due to fraud, such as false information on credit application or using a borrowed property as your own as a collateral to get approved for a loan.
In case of joint debts, while you may file for bankruptcy, the creditor can go after the joint applicant to recover the money. Similarly, for a business debt, secured through a partnership will need all partners to file for bankruptcy together.
Some of the debts that cannot, under any circumstances, be eliminated either through Chapter 7 or Chapter 13 bankruptcy include:
- Debts not mentioned on bankruptcy list
- Debts from injury or death due to DUI, and
- Fines/penalties due to violation of law
These debts survive Chapter 7 bankruptcy; and in Chapter 13 bankruptcy, you will need to pay them in full, else they remain live even after the case has ended.
Whatever your reason for considering bankruptcy, you will need advice from an expert bankruptcy lawyer in Cleveland. Rubinstein Law Firm can provide you with the much-needed assistance with all your debt problems and bankruptcy.