One reason people decide to file a chapter 7 bankruptcy is to liquify their debt so that they can get a fresh start. A bankruptcy discharge is a court order which states that you do not have to pay most of your debts.
However, there are some debts which cannot be discharged. For example you cannot discharge most taxes, child support or spousal maintenance, most student loans, court fines and restitution, and a personal injury judgement when it involves drunk driving or other intoxicants.
Some of your debts are held by secured property such as your house or car. You do not have to pay a secured claim if the debt is discharged, however the creditor can take the property back.
In this case, you may wish to continue to make payments on the property you would like to keep. To promise to pay the debt, you must file a reaffirmation agreement with the court. If approved, you must make payments as directed or risk owing the entire debt without the protection of bankruptcy.
If you have questions regarding your eligibility to file for Chapter 7 bankruptcy or would like to know what debt can or cannot be discharged, contact the Law Offices of Charles E. Covey for assistance. Charles prides himself on helping people who are experiencing a difficult financial situation get a fresh start. He will put his experience to work for you.
Call today at 309-674-8125 for a free consultation to see if bankruptcy is the right strategy for you and your family.