Release from every debt is not always possible

| Apr 19, 2018 | blog |

If you’re among many in New Jersey who have been wading through some rough financial waters, you may be trying to focus on the future, more specifically, what options are available to help you rebuild your finances and restore financial stability in the weeks and months ahead. If you also happen to be among those who determined that bankruptcy is the most viable option to secure immediate debt relief and pave the way toward a healthier financial future, you might be wondering about dischargeable versus non-dischargeable debt.

It’s critical that you understand the difference because it may affect which type of bankruptcy you choose. Knowing that you want to make as informed of a decision as possible, it may help to speak to someone who is well versed in the bankruptcy process.

Apply the bankruptcy code

If you’re concerned about a particular debt regarding whether bankruptcy will relieve it, you may want to research the bankruptcy code to find answers to your questions. There isn’t a standardized list of dischargeable versus non-dischargeable debts. In fact, you may be able to discharge some debts under one form of bankruptcy while the same debt would be non-dischargeable under another.

For instance, Chapter 13 bankruptcy typically allows release of certain debts that Chapters 7 or 11 do not. Debts you incur through property division in divorce, as well as certain tax obligations are among the types of debt dischargeable under Chapter 13 that not under other types of bankruptcy.

Choose the best option to suit your needs and goals

Various extenuating circumstances may affect your bankruptcy choice. There are certain debts that are never dischargeable, such as child support payments, so seeking clarification of the specific laws and regulations that affect your specific situation is the best way to avoid negative surprises and further financial complications. So too, if financial problems are adversely affecting your ability to pay child support, pursuing debt relief assistance may help you avoid legal trouble.

Many people hesitate to reach out for support when it comes to a serious financial crisis and bankruptcy considerations because there tends to be stigma attached to such issues. Taking advantage of available resources may not only help simplify the bankruptcy process, it may point you in the right direction toward a stronger financial future. Debt relief and renewed financial stability may be far more attainable that you thought.