Bankruptcy can eliminate credit card debt, payday loans, medical bills, and other unsecured debt. There is debt that by law cannot be eliminated, such as alimony and child support.
Bankruptcy does not mean that you no longer have to make secured payments such as mortgage debt if you want to keep your house. During and after your bankruptcy case you will have to continue to make your payments if you wish to keep your collateral.
Repossessions and Foreclosures
If you are about to lose your home or your car is about to be repossessed for nonpayment, filing Chapter 13 bankruptcy will hold that action at bay while you make court approved payments to catch up on your debt while keeping your assets.
If you would like to, you can surrender your secured assets in Chapter 7 bankruptcy, and those payments will also be discharged in the bankruptcy case.
It is very difficult to get student loans included in your bankruptcy case. You must prove that you are permanently disabled and unable to work and have no prospect of employment in the future.
If your tax due date was less then three years old before you filed bankruptcy, you would not be able to discharge your tax debt. If however, the date of the return is at least three years before you filed bankruptcy, and the return was filed at least two years before, and the IRS assessment is at least 240 days old, and you aren’t guilty of tax fraud or tax evasion, your tax debt may be eligible to be discharged in bankruptcy.
If you are unsure what debt you can eliminate in bankruptcy, contact a Houston bankruptcy attorney to discuss your best options to get a fresh financial start.