If you qualify for a Chapter 7 bankruptcy, many of your debts will be discharged. This means you won’t have to pay them back because the court has decided you don’t have enough money to. But this doesn’t work for all debts – some aren’t eligible for discharge.
Here’s what bankruptcy generally does and doesn’t cover and where you can get qualified legal help as you go through the different steps of resolving your debts through the court.
Debts Not Included In Texas Bankruptcy
Some debts aren’t covered by bankruptcy, even if the court determines that you don’t have enough money to pay other debts. These include:
- Back child support or alimony that you owe
- Student loans, especially loans that are secured
- Debts you obtained by fraudulent means
- State or federal taxes that you owe, especially if it was debt accrued within the last 3 years
- Any debt you took on within 6 months of filing for bankruptcy
- Court fines or penalties
- Debts that weren’t included in your filing
When you file for bankruptcy, you’ll have a short period of time where you won’t have to pay anything to any creditor that you owe money to. This is what’s called an automatic stay and it goes into effect right after your paperwork is filed.
The automatic stay orders all creditors to stop collections until the bankruptcy is over, which could take several weeks or even months. Then, you will have to start paying back anything that wasn’t discharged by the court.
Is Bankruptcy Right For Me?
Deciding to file bankruptcy can be difficult. Here are some things to consider when looking at whether or not bankruptcy is the best option for your circumstances:
- Are creditors calling you all the time, especially at work?
- Do you get bills in the mail every day for debts you can’t afford to pay?
- Do you have large amounts of debt from a medical emergency?
- Are you going to be evicted soon or are you at risk of foreclosure on your home?
- Are you using credit cards to purchase basic supplies?
At Sims Bankruptcy Law, PLLC, we have the skills and experience to provide you with comprehensive legal counsel and advocacy when financial problems overwhelm you. Contact us today for a free consultation to discuss your debt and available resources in detail by dialing 469-751-7467 (DFW) or 254-304-7161 (Central Texas).