There's plenty of marketing and truth behind the statement that a bankruptcy filing is a fresh start for you when you're in over your head with bills and debts. However, there are also some misconceptions that California residents have about what can and cannot be accomplished through a bankruptcy petition. Read on to learn more about some of the most common myths. Educating yourself before you file is important so that you have a realistic and clear expectation about what filing will do for you.
Bankruptcy might not be the right fit for everyone, so it's key to sit down with a Calfironia Bankruptcy Attorney to discuss whether your situation is appropriate and whether now is the right time. Sometimes the very act of talking this through with someone else can help you give the clarity you need over your next steps.
Some of the most important things that California bankruptcy cannot do include:
• Eliminating creditor rights for certain kinds of secured debts.
• Eliminating debts owed to the IRS, except in limited circumstances.
• Eliminate those debts associated with child support or other court-ordered payments.
• Protect those people who have co-signed on one of your debts.
• Eradicated most federal student loans
• Eliminate criminal fines
In Chapter 7, property you own may be sold for the benefit of your creditors in an effort to pay off some of those debts. Those debts that are covered by Chapter 7 will be gone after you finish the entire bankruptcy process. For more information about what can and cannot be discharged, contact our Law Firm today.