Bankruptcy declaration can save you from immense harassments till a certain extent. But if you think that you can evade all your payments by the mere announcement of bankruptcy, then you are completely wrong. It will not clear all your debts. It will offer you some privileges at the time of the financial crash. If you have been paying the alimony and child support money, you will have to continue the payments as bankruptcy stay order will not include any stoppage of such payments. Even if you have filed for Chapter 13, you will have to pay the full amounts through the plan.
No prevention of repossession by secured creditor
The bankruptcy discharge will eliminate the debts, but it will never delete the liens. Owing to the claim, a creditor can possess your mortgaged property, sell the property at some auction, and can also proceed with the application for loan balance. Until you pay off the debt, the lien will stay on the property. When you have the secured debt, the creditor possesses the lien on your asset. Through bankruptcy, you can avoid the obligation of paying the debt, but will not take off the lien. The creditor can recover the collateral.
No student loan discharge
When you discuss with a reputed attorney, you will come to know that even in bankrupt condition, you are liable to pay off the students loan. According to this attorney, the only way to evade the payment is to prove that you will face inexplicable hardship for repaying. But the hardship standard is too difficult for the meeting. The attorney has to prove that you won’t be able to pay the money soon or even in the near future given to the extreme economic depression. You might get exemptions from paying the older unpaid dues of tax debts.
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