What Debts Survive Bankruptcy?
Bankruptcy can provide a debtor with a powerful solution to get rid of debt that plagues their financial freedom. However, some debts are exempted from the bankruptcy process. This means that a debtor will still need to pay these debts even after filing for protection. However, the debt reduction provided by bankruptcy will usually put a person in a much better position to handle these debts.
If you’re trying to deal with your debt problems, but can’t seem to make any headway with your creditors, we may be able to help. For more information about how bankruptcy can be used to get a fresh start on your finances, contact the Joliet bankruptcy lawyers of Law Offices of Stuart B. Handelman, P.C., by calling 815-722-2201 today.
Non-dischargeable Debts in Bankruptcy
When a person files for bankruptcy, they may expect the law to quickly deal with each of their loans and obligations quickly and completely. However, bankruptcy doesn’t work that way. Creditors have the right to challenge a debtor in many parts of bankruptcy proceedings and some debts aren’t able to be discharged. These debts can include the following:
- Debts linked to personal injury settlements caused by drunk driving
- Financial penalties from criminal violations, including traffic tickets
- Any type of debt not listed when filing for bankruptcy
In Chapter 7 bankruptcy, these debts will simply not be discharged and will be left over after the proceedings are finished. In Chapter 13 bankruptcy, a debtor needs to pay these debts off. This means that they will be part of a repayment plan and will not be discharged after the repayment plan is finished.
Bankruptcy may seem frightening, but it can actually be a great way for a person in need of help to break out of their overwhelming debts. To learn more about your options when filing, contact the Joliet bankruptcy attorneys of Law Offices of Stuart B. Handelman, P.C., at 815-722-2201 today.