Bankrupcy questions and answers before going to the bankrupcy court.

It is never easy to make the decision to file for bankruptcy. However, it may be your only option if you cannot create a budget that will get yourself out of debt over the course of the next five years. If you file for bankruptcy, you should know that going to bankruptcy court could be a difficult task. This is because a lot of your debts will be discharged under bankruptcy, though there are several debts that cannot be discharged. These are debts that you are going to have to continue to pay off even after your bankruptcy has been discharged.

How Alimony And Child Support Stand Up In Bankruptcy Court

Don’t expect to get out of alimony or child support obligations in bankruptcy court. Under the Bankruptcy Abuse Prevention and Consumer Protection Act, these debts are of the highest priority and collection efforts will continue on these obligations even after bankruptcy relief is sought.

How Back Taxes Stack Up In Bankruptcy Court

Under the old bankruptcy laws, if you filed for Chapter 13 bankruptcy, back taxes were figured into the Chapter 13 repayment plan. However, the new Bankruptcy Abuse Prevention and Consumer Protection Act changed this and back taxes are no longer dischargeable.

How Student Loans Add Up In Bankruptcy Court

Even after filing bankruptcy, you may still be expected to repay your student loans unless you are completely disabled. In the past, private student loans were dischargeable under Chapter 7 bankruptcy. But now the Bankruptcy Abuse Prevention and Consumer Protection Act weighs private loans the same as government guaranteed loans. The only way to discharge a student loan under the current bankruptcy laws is to prove that repaying these loans will cause undue hardship on you or your family. And usually the only people who can prove this are those who can no longer work due to a serious illness or disability.

Conclusion

The decision to file bankruptcy can be a tough one and understanding the new bankruptcy laws can be confusing and frustrating. A person seeking bankruptcy relief should seek the help of an experienced bankruptcy attorney to ease them through the process. Filing bankruptcy may be a tough process but one that will ultimately relieve you of some of the burden of your debt.

About the Author:

Can debt settlement companies save you money on your debts? Get the inside scoop on the Debtopedia website where you’ll get your free copy of my report Secrets Of Credit Card Debt

William Blake | Bankruptcy Questions |

Tags: bankruptcy law, Bankruptcy Questions, popular bankruptcy information

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