Two of the most important things to do before you file bankruptcy is:

  1. Make sure you are on your feet financially. (That is, you are able to pay your living expenses with your current income)

    1. This is important because you cannot file bankruptcy again for eight years under Chapter 7, and for 6 years under Chapter 13.

  2. Your debt will not be discharged against a creditor if they do not get notice of the bankruptcy.

    1. In addition to an estimate of the debt, make sure you list all of the correct names and addresses of your creditors.

Some of the debts that are not discharged in bankruptcy include:

  1. Taxes (Federal or State)

  2. Child Support and Certain Divorce Obligations

  3. Student Loans (very few exceptions)

  4. Criminal penalties

  5. Debt incurred by fraud or theft.

Most other debts are dischargeable, but there are some exceptions.  For example, debt incurred before bankruptcy (such as certain credit card debt charged in the last 90 days before you file) cannot be discharged.

The value of some of your property is exempt from bankruptcy. 

You may be able to reaffirm certain debts.  For example, if the payments are current and the equity is within your exemption limits, you can reaffirm a home mortgage or car loans. 

It is important to consult with an attorney before paying off additional debt, and before purchasing or transferring any property, etc.

Please contact our office for a FREE debt consultation.