4 Debts Filing For Bankruptcy Won't Cover
If you're in a financial bind, you may want to seek the legal status of bankruptcy. This can be helpful in reducing a lot of debt that you just can't repay. However, the key to having the most success in this area will primarily lie on being informed about the bankruptcy process. It's ideal to be aware of some of the debts bankruptcy won't pay so you'll be prepared to cover these yourself.
Debt #1: Student loans
Have you ever went to college and didn't have the funds to cover your classes or books? If so, you may have taken out a loan to assist you in getting the education you need.
Student loans will aren't part of the payments made when you have success filing for bankruptcy. This is a debt you'll need to pay on your own without the assistance of the legal system.
Debt #2: Court obligations
Do you have a child and need to pay support because you're not in the marriage with the other parent any longer? What about paying alimony to your ex-spouse?
If you have any financial obligations that have been set by the court, you will need to pay these, and there's no way to avoid doing so.
Debt #3: Payments to the Internal Revenue Service (IRS)
It will be necessary to continue making any payment that you owe to the IRS. Unfortunately, filing for bankruptcy won't affect this debt at all, and it will be on you to ensure these amounts get paid.
Keep in mind failure to make the necessary tax payments within the right timeframe could translate to fees and penalties that will need to be paid. It's always ideal to pay promptly to avoid having to pay these.
Debt #4: Legal cases
If you've been ordered by the court to pay another individual a certain amount of money due to a personal injury case, this will have to be paid. Even if you have high success with your bankruptcy, you won't be able to get out of doing so.
Taking the time to learn what's covered and the things that aren't are sure to be to your benefit if you're in this situation. Knowing what to expect ahead of time can prepare you for the future when it comes to your this legal status. Be sure to work closely with your preferred bankruptcy legal services to assist you today!