When a person sets up with the intention of filing bankruptcy they usually want to try to file Chapter 7. This is because Chapter 7 is what allows you to eliminate almost all of your debts. It is important to keep in mind that there are some debts that filing bankruptcy will not eliminate. If you are struggling to determine what debts, if any, you have that would not get eliminated a Bankruptcy Attorney in Waukesha WI would be able to go over your finances with you to figure that out. In general, the following debts will not be eliminated from your credit history:
* Debts that are not listed before you file
* Student loans
* Taxes
* Child support
* Alimony
* Government related fines and penalties
* Court fees
* Debts associated with driving while intoxicated
* Secure credit cards or loans
The only exception to debts that are never eliminated by filing bankruptcy would be educational loans. If the court believes that paying off your student loans would impose what is known as undue hardship on you and your family, then they would be eligible to be eliminated by filing Chapter 7. The best thing you can do in this situation would be to talk to your Bankruptcy Attorney Waukesha WI if you have a lot expensive student loans. Your lawyer would know what you would need to do in order to argue that your student loans are unpayable. Naturally, your lawyer would have to be able to prove that you are not financially capable of paying your debts when you file.
The first thing the court will look at is your income. They are going to compare the income you make with your bills to see whether or not you could pay off your student loans if you really wanted to. They are going to look at how long you’ve had the loans. They are also going to look at whether or not you’ve made any good faith attempts to pay the loan. If you’ve never paid anything towards your student loans and you work a full time job, it is unlikely that the court would decide that your student loans should be eliminated.
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