Filing for bankruptcy can be a challenging and complex process, but one of the most common questions people ask is whether their debts will go away after they file. The answer is not as simple as yes or no.
According to the article from Articleted.com, filing for bankruptcy does not automatically wipe out debt, but it can provide a fresh start and potentially lead to a reduction in payments over time.
However, some debts may still be considered non-dischargeable, such as taxes, student loans, or credit card debt that is not dischargeable under the Bankruptcy Code. Additionally, certain debts, like those for child support or alimony, may continue to be a burden even after filing for bankruptcy.
"Debts that are considered non-dischargeable include taxes owed to the government, student loans with interest, credit card debt that is not dischargeable under the Bankruptcy Code, and certain medical bills," explains the article. "These debts may still be required to be paid back, even after filing for bankruptcy."
"In addition, some debts, like child support or alimony, are typically non-dischargeable as well. These debts are usually considered a necessary expense and cannot be completely eliminated through bankruptcy."
"While filing for bankruptcy can provide a fresh start and potentially lead to a reduction in payments over time, it's essential to understand the specifics of your debt and how it will affect you," advises the article. "It's also crucial to work with a qualified attorney who is familiar with bankruptcy laws and procedures."
"Ultimately, the decision to file for bankruptcy should be made after careful consideration and consultation with a financial advisor or attorney," concludes the article. "By understanding the pros and cons of bankruptcy, you can make an informed decision about whether it's right for you."
https://www.articleted.com/article/572429/43204/Does-Debt-Go-Away-After-Filing-For-Bankruptcy--