Yes bankruptcy removes the levels of debts, but does not eliminate it in all types. Take a while before applying for bankruptcy and make sure which all debts will get removed and which all will stay. Major parts can be looked after either in chapter 7 and some may be looked after in chapter 13.
There are certain debts that cannot be eliminated like:-
- Child supporting
- Alimony
- Tax debts
- Student loans
- Secured debts
There are many situations in which the chapter 7 may seem apt, and some instance may not be complying with the stating of chapter 7, and it is when you seek chapter 13. For the best of guidance, you may seek help from bankruptcy attorney in San Diego.
What bankruptcy is capable of doing?
If you have been experiencing debt, then bankruptcy is a powerful source to help you. The things that may bring help in this regard as follows:-
- It helps in wiping of debt connected with the credit cards
- This is done because credit card is considered as an unsecured debt
- This is looked after under the factors of bankruptcy the most.
- IF chapter 13 is applied for, then you will have to pay some parts of the unsecured debts
- It prevents any sort of harassment you may be facing from the creditor
- If the lender harasses severely, then bankruptcy comes as a supportive shield.
What is it that the bankruptcy can’t do?
- It is not capable of removing liens.
- The bankruptcy cannot remove the child support debts in such instances
- This cannot wipe out the student loan totally. Only few aspects are looked after.
- It cannot eliminate the tax debts
- It cannot eliminate other non dischargeable debts
- If the debts exist for aspects related with death caused due to intoxicated ways of driving, then it cannot be removed.
- It cannot help you under the aspects of penalties charged for violation of the law.
- It cannot help if you are penalized under criminal acts
What is it that only chapter 13 can do?
- It may prevent foreclosure
- It forces the lender for accepting the missed payment overtime.
- This chapter may make you keep the non-exempt property as you are declares bankrupt
- The debt levels may be reduced considering the situation under consideration.
Bankruptcy may prevent collection activities, remove maximum types of debts and allow a bankrupt to reorganize the debts you may have. It may also help you to level up on the mortgage that is missed or any payment that needs to be made against the car loan.
Bankruptcy is one situation that no one wishes to experience, but there are times when having bankruptcy are a boon and not a bane. There are many things and situations under which bankruptcy is capable of helping you, but on the same line it is not potent enough to help you under some circumstances.