Many people mistakenly believe that filing a Chapter 7 bankruptcy will “wipe the slate clean" and free them of all their debts, but that is not necessarily true. There are some debts that will still be owed after a Chapter 7 bankruptcy. Even if you file, you will still need to pay your child and spousal support and any arrears on the support (late fees, etc), most back taxes, student loans, debts that you agreed to pay in a Separation Agreement or were ordered to pay in a Divorce Decree or criminal fines or restitution payments. In addition, a creditor may seek to have a debt declared non-dischargeable in your bankruptcy under certain circumstances. If you are not clear on which debts will and will not be discharged, speak with an attorney or reputable credit counselor before filing.
If you have debts that may not be discharged, you may have other options. Contact us or call us today at 757-276-6555 to schedule a free no obligation consultation. We will discuss your debts with you and advise you of the best course of action for you based on the debts you have.