Non-Dischargeable debts in bankruptcy in Georgia
One of the disclosures you are required to make when you first meet with a bankruptcy attorney in Kennesaw, GA is what debts you owe and to whom you owe those debts. For most consumers who are considering bankruptcy there are a number of concerns they are facing including:
- Overwhelming medical debt – one of the leading reasons people file for bankruptcy is the amount of medical debt they have outstanding. Prior to the implementation of the Affordable Care Act, millions of US residents were forced into bankruptcy to deal with overwhelming medical bills, often after they had wiped out their savings.
- Credit card debt – whether due to bad decisions, illness, loss of earnings or divorce, credit card debt can get out of hand and result in the necessity of filing bankruptcy.
- Threat of mortgage foreclosure – in some instances, whether because of increases in interest rates on adjustable mortgages, loss of wages or divorce, consumers facing foreclosure often consider bankruptcy to save their home.
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Kennesaw bankruptcy lawyer discusses non-dischargeable debts
While it is possible to wipe out credit card debt and medical debt in bankruptcy, a homeowner who is facing foreclosure will still have to pay their mortgage as part of their bankruptcy plan. For a homeowner in GA who is struggling to catch up on past-due amounts, it is often possible to restructure their mortgage debt in bankruptcy. However, there are other debts which cannot be discharged in bankruptcy, regardless of how much of a financial challenge they may present including:
- Back child and spousal support – regardless of how much unpaid child or spousal support is outstanding and whether the funds are available to “catch up” these debts may not be discharged in bankruptcy.
- Back taxes – there are very few cases where tax debt may be discharged. In order for federal tax debt to be discharged in bankruptcy there are certain “tests” which must be met including the debt being at least three years old. This applies only to income tax and not payroll taxes due to the federal government.
- Restitution/personal injury judgments – in most cases, bankruptcy will not protect debtors from judgments or personal injury claims where they are ordered to make payments to an injured party.
- Student loans – as a Chapter 7 lawyer in Kennesaw, GA I often find clients who have a substantial amount of student loan debt. These debts can be overwhelming and may be the primary reason someone is considering bankruptcy. However, young adults who are just getting started will soon find that student loans may not be discharged. Older debtors may be able to have student loans discharged particularly if they are disabled, nearing retirement or have other extenuating circumstances which can keep them from repaying this debt.
Making a decision to file Chapter 7 bankruptcy is never easy but in many cases, it may be necessary in order to get back on your feet financially. When you meet with a Chapter 7 lawyer in Kennesaw GA, be sure to have a complete list of your creditors, the amount of debt you owe and an accounting of your current assets and income. Only with a clear understanding of your overall financial health can your attorney help you through the bankruptcy process