Bankruptcy may be the solution for handling certain debts like credit card debt or medical bills. However, it may not be able to relieve you of your other debts. Read on to discover how you should handle your non-dischargeable debts and how a seasoned Louisville, Kentucky consumer bankruptcy lawyer at Schwartz Bankruptcy Law Center can guide you on how to go about this.
What are the different types of non-dischargeable debts?
First of all, non-dischargeable debts are considered those that cannot and will not be eliminated upon filing for bankruptcy. Examples of such debts include, but are not limited to, the following:
- The mortgage on your home.
- The outstanding balance for your alimony and child support orders.
- The outstanding balance for your attorney fees from your child custody or child support dispute.
- The outstanding balance for your government-funded student loans.
- Any fines you received from a government agency.
- Any restitution or criminal fines against you.
- Any debts from death or personal injury caused by your intoxicated driving.
- Any debts from taxes or liens.
- Any debts incurred by money or property you acquired under false pretenses.
- Any debts incurred by fraud.
How do I deal with non-dischargeable debts in my Chapter 7 bankruptcy?
It must be emphasized that, when it comes to a Chapter 7 bankruptcy, the elimination of certain debts is not guaranteed to you. In other words, you must fulfill the requirements set by bankruptcy law to have certain debts discharged from you. With that being said, you should follow the below tips:
- You should provide the bankruptcy court with any tax documents they request from you.
- You should complete the course on personal financial management that the bankruptcy court requests of you.
- You should not destroy or hide your financial books and records.
- You should not transfer or hide your assets to defraud or hinder your creditors.
- You should not commit perjury or any fraudulent activity during your bankruptcy proceedings.
How do I deal with these debts in my Chapter 13 bankruptcy?
On the flip side, when it comes to a Chapter 13 bankruptcy, you can better deal with your non-dischargeable debts by incorporating them into your repayment plan. That is, you will need to present the bankruptcy court with a repayment plan on how you intend to pay off your remaining debts anyway. So, you can help yourself out by outlining a way that will allow you to pay off all your non-dischargeable debts comfortably within three to five years.
We understand just how daunting your debts may be, which is why we want to help you out of your current financial challenge. Whenever you are ready, reach out to a competent Louisville, Kentucky consumer bankruptcy lawyer. We look forward to it.