A bankruptcy lawyer will tell you that individual advances from acquaintances, family members, a bank, or a credit union are liabilities that may be dismissed in insolvency. A dismissal excuses the person borrowing funds from the legitimate responsibility to repay previous liabilities. Some instances of liabilities that may be dismissed include swimming pool loans, charge cards, doctor bills, past due utility bills, returned checks, and court of law costs that aren’t thought to be deceitful.
There are 19 types of debt that may not be charged off in bankruptcy. These include:
- Student loans
- Individual harm liabilities emerging from a drunk driver automobile crash
- Obligations from a tax-advantaged retirement plan
- Child support or alimony
- Liabilities payable to a minor or ex-partner emerging from a split up or separation
- Fines or penalization owed to government organizations
- Debts left off the insolvency request unless the lender, in fact, knew of the recording
- Various kinds of taxes
- Condo or cooperative shelter fee arrears
- Lawyer payments for child custody or support
- Felon restitution and other court fees or penalties
If you decide to file for insolvency, you will need to determine what type of bankruptcy you need to file for. A bankruptcy lawyer will be able to help you determine what is right for you. In Chapter 7 bankruptcy, the goal is to eliminate all debts. Therefore, if you have medical bills, you can avoid paying them. If you have a swimming pool loan, it can be canceled out. There are things that are exempt from Chapter 7. These include your house, automobile, jewelry, health aids, and retirement accounts.
With Chapter 13 bankruptcy, a repayment plan is put into place. It may be possible to have some debt eliminated. Borrowers may not owe over $465,275 of unsecured debt or $1,395,875 of secured debt when filing for a Chapter 13 insolvency. The Bankruptcy Code provides stipulations for an increase to these amounts every 36 months.
Chapter 7 and 13 bankruptcy have important differences between them. Specifically, in a Chapter 13 bankruptcy, a borrower retains his or her possessions with the agreement that he or she is obligated to repay all or part of the debt over a period of three to five years. Chapter 13 bankruptcy allows a borrower to keep their assets and recover quickly from insolvency if the borrower can meet certain qualification conditions, such as obtaining adequate revenue to repay the obligation on time.
Chapter 7 bankruptcy can be more destructive for borrowers with large possession foundations than for borrowers with minor asset bases and apparently impassable amounts of liability. This enables borrowers to promptly repay immense amounts of liability. Chapter 7 bankruptcy is generally limited to low-income individuals who are unable to repay some of their debts.
A Chapter 7 bankruptcy petition erases unsecured liabilities once the court accepts the petition. This operation could last many months. Registering for Chapter 13 insolvency doesn’t release unsecured debts. On the contrary, installments must be paid in accordance with a court-ordered schedule. When the schedule ends and all installments are paid, the leftover liability can be paid back.
If you are located in or near Tampa and are in need of assistance from a bankruptcy lawyer, don’t hesitate to give Weller Legal Group a call. They can guide you through the entire process of filing for bankruptcy, helping you to understand what is happening and eliminating many of the headaches associated with it.
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