Do You Lose All Debts After Filing a Claim for Bankruptcy?

Do You Lose All Debts After Filing a Claim for Bankruptcy?

If you are experiencing difficulties with settling your debts, you could call your family lawyer in Maryland and seek help in filing for bankruptcy protection. You can file for either Chapter 7 or Chapter 13 bankruptcy, the details of which we’ve already discussed in a previous blog on this website.

In this article, the more interesting question to ask would be: “Does bankruptcy wipe out all of my debts?”

The short answer is: “No.”

Your legal counsel should be able to identify and explain to you which debts you cannot clear from your record when you filed for Chapter 7 or Chapter 13 bankruptcy. These debts include:

  • Child support and alimony
    Bankruptcy proceedings only cover debts that you owe financial institutions. Your child support obligations remain as they are of a different class. Worse, filing for Chapter 13 bankruptcy will include unpaid alimonies in your debt repayment plan.
  • Student loans
    Student loans can only be cleared if you’re able to prove that their settlement will cause you undue hardship. You have the burden of proof in this case, and the criteria are very strict.
  • Tax debts
  • Fines and penalties for traffic violations, and criminal liabilities
  • Debts that you don’t include in your bankruptcy filing

Do you need a trusted law firm in Laurel, Maryland to assist you in filing for bankruptcies? Don’t hesitate to call or drop a line on our social media page. We at The Mercy Law Firm LLC are more than happy to help you.

This entry was posted in Bankruptcy and tagged , , . Bookmark the permalink.

Leave a Reply

Your email address will not be published. Required fields are marked *