Bankruptcy is an extreme form of debt relief that may be used to help bring you a peace of mind. It can give you a fresh start but not all bills are covered by bankruptcy proceedings.
The regulations regarding bankruptcy and debt relief are highly dependant upon local laws. However, there usually is a general rule that there are certain types of bills that bankruptcy can relieve you from and certain types it cannot relieve you from.
With that in mind please view the next two sections carefully. It may open your eyes. It may disappoint you some too. In the end though it can cut down on the amount of time you pay for legal advice, though it does not substitute for such.
Bills covered that might by bankruptcy could include the following:
- Medical or counseling bills
- Mortgages owed
- Car payments
- Unsecured debt such as credit cards
- Any other obligations not mentioned here as applicable to state and local laws]
There are some conflicts as to what should and what should not be included while going through bankruptcy proceedings. This is a matter best discussed with a lawyer.
A debt attorney would be recommended in this case. However, any lawyer well-trained in financial matters who you ca trust would be a good choice.
If you no of no one right now seek referrals from friends or family. Your financial future depends on seeking correct advice.
Bills not covered by bankruptcy usually include the following:
- Past due amounts of alimony or child support
- Any divorce settlement payments owed such as maintenance
- Student loans except in proof of extreme financial hardship
- Income tax owed within less than three years
- Judgments pertaining to DUIs
- Debt accumulated while trying to use illegal means to make money
- Money owed as a result of writing a bad check or lying on a credit application
You may notice some discrepancies when you review information on what bills can be covered by bankruptcy. This is confusing to a person seeking debt relief. For that reason, the best advice would be to seek professional counseling regarding all financial matters.
Know also that you could become bankrupt involuntarily. However, that also depends upon where in the world you live and what laws you follow. Avoiding this involuntary bankruptcy is one reason you are advised to seek debt relief counseling as soon as possible.