Bankruptcy is a
potent solution for those in financial distress.
But you must bear in
mind that some kinds of debt cannot be eliminated in bankruptcy.
Bankruptcy
lawyers in Maryland have been consistently counseling
their clients that they should make sure to understand which debts will be
wiped out and which they will have to retain.
Chapter 7 and Chapter
13, the two most common types of bankruptcy, will get rid of credit card debt,
but important liabilities like child support, secured debt, taxes, and alimony
and education loans, will remain.
Here is how
bankruptcy can help you.
It is an excellent
tool to wipe out credit card debt. However you must keep in mind that the
credit card you possess must not be a special secured one.
Some of the other
debts that are dischargeable under Chapter 7 include:
- medical
bills
- auto
accident claims
- business
debts
- dishonored
checks
- Unpaid
taxes past a specified number of years
- money
owed under lease agreements
Bankruptcy
lawyers in Maryland have also been reiterating that a
debtor does not have an unqualified right to a discharge.
“If you want to
receive a discharge, you must abide by the bankruptcy code”, says an attorney
at a bankruptcy law firm in Maryland.
“Section 727(a) of the bankruptcy code lists out reasons why the court may
disallow you a Chapter 7 discharge”.
The reasons to deny
discharge are:
- If
you commit perjury or other deceptive acts in connection with your
bankruptcy case
- If
you violate a court order
- If
you have been concealing property with a view to obstruct your creditors
- If
you have not completed a course in personal financial management. Before
you are granted a bankruptcy discharge, you must file a certificate that
endorses the fact that you underwent a debtor education course.
- If
you are unable to account for missing assets
You must also
remember that a creditor can successfully object to a discharge.
Such situations can
include:
- Credit
card purchases for certain luxury items owed to a single creditor
- Cash
advances totaling more than a specified amount
- If
you have incurred debts by deceit or false pretenses
- If
you have incurred debts by causing willful injury to a person or to the
property of another
If you are
considering bankruptcy as a solution to dealing with your financial distress,
you may want to know more about how it works.
It is a good idea to
consult bankruptcy lawyers in Maryland
to get inclusive counsel.
