Leading Financial and Family Law Attorneys
All About Bankruptcy, Part 3
This post is the third in a three part series about bankruptcy. If you haven’t already read parts 1 and 2, I recommend you do before continuing.
Unfortunately, there are also several types of debt that typically cannot be discharged in a bankruptcy filing:
- Missed child support payments
- Missed spousal support payments (alimony)
- Fines and penalties owed for breaking the law
- Some tax debts
- Court costs – although in some chapter 13 filings these may be discharged
When is bankruptcy the best option?
If you’re considering it, this question is likely on your mind. Unfortunately, the answer is not always a straightforward one. Only a qualified attorney can tell you if it is a good fit for your specific situation.
That being said, let’s take a look at some situations when it might be a good option:
You’ve been through credit counseling
If you’ve spoken to a professional about your financial affairs and they were unable to come up with a budget and plan to get you out of debt, or they suggested bankruptcy, it’s definitely worth considering.
Your debt is ruling your life
If you’ve gotten to the point where credit collectors are hounding you, interfering with your life, or otherwise driving you up the wall, it might be time to consider it.
You’re continually taking out cash advances or payday loans
These, dangerous, high-risk financial products will only make your financial situation worse in the long run. It might be time to consider bankruptcy.
If you can’t afford living expenses because of your debt
If your car is about to be or has been repossessed, if your house is in foreclosure, or if you can’t put food on the table or pay the heating bill because of your debt, don’t wait – get in touch with a bankruptcy attorney.