If you are in the process of considering filing for Chapter 7 Bankruptcy and wondering what can be discharged, you're in the right place. Filing bankruptcy can be a positive experience for most people and a fresh financial start. But depending on where most your debt is coming from, a Chapter 7 bankruptcy may not be the right option to help you. Not all debt is easily discharged; so read on to learn what may not get taken care of with a bankruptcy.
Debts That Contribute To Society
First of if you have a lot of debt such as child support, alimony or any other money that contributes to the good of society, chapter 7 may not help you. Debt that contributes to society in a positive way isn't going to get discharged with a bankruptcy. Bankruptcy was set up to help people in financial hardship and is monitored close, so that people do not take advantage of the bankruptcy system. Do not try to take advantage of system that is meant to help people, just to get out of financial responsibilities.
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Are Student Loans Taken Care Of With Bankruptcy?
Most government loans will not be discharged with a bankruptcy. This is because the amount of money granted by the government each year for colleges. In fact student loans are one of the toughest loans to get discharged, they have even made it more difficult with the latest bankruptcy laws. It is possible to get a government student loan after bankruptcy though.
What About Car Payments and My Home Mortgage?
Car payments and mortgages will not be discharged with Chapter 7 bankruptcy. If you are looking to stop foreclosure on your home a better option will be to go with a Chapter 13 bankruptcy. Chapter 13 is where you will workout a repayment plan that will pay your creditors back in three to five years with little to no interest. It can also stop foreclosure on your home. While a Chapter 7 will just halt the foreclosure process and protect you from harassment from creditors.
Keep in mind if you are in foreclosure that a bankruptcy will look better on your credit then a foreclosure will when it comes to getting approved for a future mortgage. You can get approved for a mortgage after bankruptcy; it will take some time and probably come with a higher interest rate then your last mortgage. Mortgage companies will look into why you filed bankruptcy in the first time, if it was a one-time occurrence or an ongoing pattern before they approve you for another loan. If you have your finances back on track you should be able to get approved for another mortgage.
Bankruptcy can remain on your credit for seven years, this is something to consider before filing. Think about your future and what kind of purchases you may be making. A bankruptcy should give you a fresh financial start though, taking care of much unsecured debt, such as credit cards. If most your debt is unsecured, then bankruptcy may be the right option for you. If you have any of the above mention debts, then talking to a local bankruptcy lawyer, would be wise. They will know the local laws for your state and what chances you have of getting debt discharged.
Is Bankruptcy Right For You? Talk to Bankruptcy Attorneys Free and Confidential. Licensed bankruptcy attorneys are available. Attorneys will call you to discuss your case for free. Find out if bankruptcy is right for your situation.
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