Chapter 7 bankruptcy, also called “liquidation bankruptcy,” occurs when a consumer or business ask the court to discharge certain debts that are owed.
Bankruptcy was created to protect consumers and businesses from harassment by collection agencies and creditors during a period of overwhelming debt. In order to give consumers or businesses a fresh start, filing for bankruptcy may be the best option to get finances in order and move forward from financial instability.
What are Non-Dischargeable Debts?
Non dischargeable debts are debts that cannot be discharged and must still be paid, even when the consumer or business is in a bankruptcy period. Some common non-dischargeable debts include:
· Child support
· Certain taxes
· Educational loans
· Fines and penalties from the government
· Debts accrued after filing for bankruptcy
These debts need to be paid back and cannot be discharged, but by filing chapter 7 bankruptcy, paying off these debts becomes much less of a hassle, as most of your assets are liquidated and you are freed up from most other debts. Additionally, by creating a document that indicates all of your monthly expenses, you will be budgeting for these non-dischargeable debts to be paid off in full at regular intervals. Please seem my article on exempt property or assets to learn how chapter 7 bankruptcy law allows debtors to keep a certain amount of property or assets after going through bankruptcy proceedings.
Contact Southern Maryland Bankruptcy Attorney Daniel J. Guenther Today!
If you or your business is overwhelmed with debts that you cannot feasibly pay back, contact Southern Maryland Bankruptcy Attorney Daniel J. Guenther for a free consultation of your case, and to determine if a chapter 7 bankruptcy is a suitable option for you. Attorney Guenther is exceptionally skilled in determining the best strategy after evaluating your financial situation and will provide a free initial consultation for your case to determine if filing for bankruptcy is the best option for you. Call 301-475-3106 to take the first step in getting your finances secured.