United States Bankruptcy Law
The United States bankruptcy law has changed in recent years, and many people are under the false impression that bankruptcy protection is no longer available for Americans in financial trouble. The truth is that bankruptcy can still be filed, and many (if not most) who would have previously qualified will still be eligible under the new statute. It is important, however, to keep in mind that bankruptcy will not eliminate every kind of financial obligation.Specifically, if you were mainly concerned about student loans, child support, criminal fees, or income taxes, then bankruptcy may not be the way out of your problems. That’s because these debts are difficult to discharge in bankruptcy. So you might be barking up the wrong tree as they say if these are the main debt obligations that you’re trying to discharge. In some cases, as in the case of federal income taxes, you may be able to discharge your debts depending on your circumstances. That’s when the advice from a bankruptcy lawyer really becomes crucial because there are so many details and complex regulations to sort through.
Some of these rules are easy to understand since society doesn’t think you should be able to escape easily from your child support obligations or from your criminal fines. In addition, student loans are difficult to discharge because the government wants to encourage lenders to make loans available to college students. Banks would be less likely to loan money if it were easy to discharge these debts in bankruptcy proceedings.
As we said before, a good discussion with your bankruptcy lawyer is important to find out all the details of your case. You may be able to pay your back taxes over time by choosing a Chapter 13 repayment plan. You might even be able to discharge a student loan if your financial circumstances are pretty severe.
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