West Palm Beach bankruptcy attorney

What Bankruptcy Cannot Do: Part I

Filing for bankruptcy can help you out of some very difficult situations. However, it cannot save you from everything. It is important to know what you need to accomplish before you file for bankruptcy. This will allow you to make an educated decision as to whether or not you should file.

To help you better understand what filing for bankruptcy can do for you, here are some things that it cannot do for you.

While bankruptcy does discharge debts, it does not discharge liens. This means that if you have a creditor who has a lien on your property, that property can still be repossessed. Filing for bankruptcy in this case would discharge the debt that you owe, but would not keep your property safe.

Filing for bankruptcy will not discharge child support or alimony payments. If you file for bankruptcy, these debts are immune. This means that you will still owe these debts in full even after you have filed for bankruptcy. If you file under Chapter 13, your repayment plan will have to account for the payment of these debts as well.

Student loans are another type of debt that will generally not be assuaged in filing for bankruptcy. In order for these loans to be discharged by bankruptcy, you have to prove that repayment will cause you “undue hardship.” You must also prove that you cannot pay back these loans now, and that there is almost no chance of you being able to pay them back in the future.

Speak with a West Palm Beach Bankruptcy Attorney

Bankruptcy can be a very helpful tool, but it is not always the right choice. If you are considering bankruptcy, contact the West Palm Beach bankruptcy attorneys of Eric N. Klein & Associates at 561.353.2600