West Palm Beach Bankruptcy Lawyer

Discharged Debts, or not?

When filing for bankruptcy, it is often difficult to understand exactly what one may or may not keep. The law can sometimes be very confusing for an individual, especially for those who are not familiar with what bankruptcy entails. It may benefit one to understand which debts can be completely absolved under bankruptcy law and which, save extenuating circumstances, cannot.

Under federal law, certain debts cannot be discharged unless one has proof of an extreme personal hardship that inhibits him from repaying those debts. This hardship has to be so far-reaching that if the applicant were to repay those debts, he would not be able to provide for himself food, shelter, and transportation or maintain his personal health. Each case is considered individually and must be approved by the court.

Some of these debts include: student loans, federally or non-federally backed; back child/spousal support, and all other expenses court-mandated that denote support (insurance, medical costs, etc.); court-ordered restitution; income taxes, if payment became due within 3 years of filing for bankruptcy, and court judgments for injuries or deaths due to convicted charges of driving under the influence of dugs or alcohol.

The courts may also refuse to discharge debts arising out of “bad” conduct. This measure is usually taken as an attempt to resist dishonest behavior. While many of these issues may seem overly complicated, the law is written to help the individual who is honestly looking for a fresh start. It may be beneficial to contact an attorney who is familiar with the laws in your area.

If you are in the West Palm Beach area and would like more information on how bankruptcy will affect your current financial situation, contact the bankruptcy law specialists at the Eric N. Klein & Associates, P.A. firm. They have several years of experience and would like to hear from you today. Call them at 561-353-2600.