Some outstanding debts exempt from bankruptcy process that apply to chapter 7 and chapter 13.

Strange as it may seem for somebody filing for bankruptcy but some outstanding debts are exempt from the process. What this means is that regardless of the outcome of a bankruptcy process, you will still have to pay off these debts. This article will cover the main types of debts that are considered to be exempt and give you advise on how to determine what you will and won’t have to pay for after the process is completed.

One area of contention that always crops up is the issue of child support or maintenance payments. If a court has ordered you to pay anything towards these awards then any existing debt is considered exempt of bankruptcy proceedings. Once again, this means you will have to find this money and won’t be protected by the court. This applies for all the law chapters, including ch 7 and ch 13. Often people will see bankruptcy as a way to get out of their responsibilities in terms of these payments. They will have to pay the support in full.

Another common debt that is exempt is known as IRS liens. First a little background, if you have been audited by the IRS at some point and found to owe them money they can enforce a lien on your house or garnish your wages. Depending on the amount you owe the government, this amount can add up to a large amount of money that is, unfortunately, exempt from bankruptcy.

As we are talking about the government, it shouldn’t be forgotten that any form of government loan is seen as exempt from bankruptcy. This applies to government student loans too, that are a very common and useful way of financing education costs.

On a final note, court orders that require you to pay an individual or creditor a specific amount of money that were handed down before the bankruptcy proceeding began are also exempt from bankruptcy.

These are some of the reasons why you should understand the full consequences of filing for bankruptcy. For instance, you may have a number of debts that can never be cleared by the courts. After all you don’t want to have a low credit rating, the stigma of filing for bankruptcy and still owe a huge amount of money to people.

So it is vitally important that you get a good audit of your personal finances before you think about bankruptcy. You have to calculate your monthly income and work out all the outgoings and long standing debt. Simply put, if any of your monthly outgoings or long term debt are any of the types mentioned above then you should reflect on filing for bankruptcy.

Another thing is to determine if there are any court judgments held on your name. This should be known as it is part of the law to notify the defendant in any litigation proceedings. Again you are not protected against these should you file for bankruptcy.

About the Author:

Do you know the consequences of bankruptcy, especially exempt assets for bankruptcy and debt exempt from bankruptcy. Adrian writes on ways to deal with debt.

Adrian Fletcher | Bankruptcy Exemptions |

Tags: Bankruptcy Exemptions

A Free Gift For You!

As a way of saying "Thank You" for visiting this site here's a free gift for you. This money saving eBook is worth $17.

About this eBook: Are you wasting money? Chances are there are ways that you can easily cut back on your unnecessary spending and you won't even notice a difference. Simply learning about these techniques is the first step to making changes to your finances. We asked money experts what their best tips are for trimming the fat from the average person's budget and here are their suggestions. Click here to download this free eBook. This is a time limited offer and the download link can be taken away without notice. No sign-up form to fill-up, no email address to give, just plain free download!

You might also like to read these recommended articles

• Bankruptcy: Buffalo NY (New York) Quick Facts
  Buffalo New York law protects all or a portion of your assets or properties from being seized by creditors or the bankruptcy trustee in a Chapter 7 bankruptcy. In a Chapter 13 bankruptcy, you are generally allowed to keep all of your assets and property. Certain exceptions may apply, so it’s wise to consult with a qualified bankruptcy attorney to find out which of your assets will be protected in a bankruptcy filed in the State of New York.
  
  

Today's HOT Bankruptcy News!