Filing for bankruptcy offers a fresh start, allowing you to reset your finances and escape from insurmountable debt. It’s a legal process that often gets a bad reputation as people fear for the ramifications that come with it, but it’s a resource savvy individuals and businesses have used for years to even the financial landscape. Regardless of where you are financially, it’s important to understand that not all debts are dischargeable. After the bankruptcy process concludes, some debts will remain, requiring careful management of the debts you have before and after filing.
Our Previous Discussion on Non-Dischargeable Debts
This is a topic we have addressed previously on the Velazquez Consumer Law, LLC Blog. The debts we talked about that are either partially or completely non-dischargeable through bankruptcy are:
- Student Loan Debt
- Alimony and Child Support
- Intentional Injury Judgments
- Recently-Imposed Taxes
To learn more about these forms of non-dischargeable debt, read more on our previous article about debts that aren’t forgiven through bankruptcy.
Undeclared Debts
When you file for bankruptcy, declaring all your debts is crucial. The court needs a comprehensive understanding of your financial situation to make an informed judgment. Any debt you fail to disclose won’t be considered in the final judgment. The court doesn’t take the initiative to find undeclared debts for you. Full disclosure ensures a fair and thorough assessment of your financial obligations.
Recently-Incurred Debts
Some individuals mistakenly believe they can run up credit card bills or take out unnecessary loans just before filing for bankruptcy, assuming these debts will be forgiven. The truth is debts incurred in the months leading up to a bankruptcy filing often aren’t eligible for discharge. If you took on new debt after deciding to file for bankruptcy, the court might deem this action as fraudulent. Consequently, these recent debts will remain your responsibility, unaffected by the bankruptcy proceedings.
Government Fines and Penalties
Government fines and penalties generally survive the bankruptcy process. These obligations, including traffic tickets, criminal restitution, and other government-imposed fines, remain your responsibility. Bankruptcy courts do not typically discharge these types of debts, emphasizing the importance of addressing them separately from your other financial burdens.
File for Bankruptcy in Illinois with Sound Legal Counsel
Before you file for bankruptcy, make sure your debt can actually be forgiven and that your case will be worth it. At Velazquez Consumer Law, LLC we shield clients from surprises so they don’t waste their time pursuing bankruptcy that won’t actually help them. Contact our team and get a full overview of your financial situation before you file.
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