One of my favorite old Saturday Night Live sketches was a preview of a mock-horror movie starring John Belushi as an unwanted house guest who was sticking around too long.   The name of the movie was The Thing That Wouldn’t Leave.

A Bankruptcy discharge is pretty comprehensive in its scope.  There are some debts, however, that won’t leave even though you have filed for Chapter 7.

Whether bankruptcy is the right financial remedy for your battle with debt depends on a number of factors. A major factor to consider is the nature of your debt. Not all debts are dischargeable through bankruptcy.

Section 523 of the Bankruptcy Code lists the debts that debtors cannot discharge through bankruptcy. Examples of such debts include the following:

  • Certain taxes
  • Child support or alimony
  • Debts owed to a spouse or child related to divorce or separation
  • Attorney fees owed for custody or support issues
  • Government-imposed fines and penalties
  • Most student loans.  There may be a hardship discharge if you have become disabled after incurring the loan.
  • Personal injury awards resulting from driving under the influence
  • Debts owed to certain tax-advantaged retirement plans, condominium or cooperative housing fees
  • Court fines and penalties
  • Court-ordered restitution in criminal cases
  • Debts to which a creditor successfully objects and the court deems not dischargeable

When the majority of your debt is a student loan, bankruptcy is often not a viable solution. However, sometimes bankruptcy can enable you to discharge enough other debt that you are able continue paying your student loan. Therefore, it may be the best remedy despite the fact that you cannot discharge the student loan.

When debt is overwhelming, speak with an attorney and get a professional opinion. An experienced Bakersfield bankruptcy lawyer can review your financial situation and help you weigh your options. Under the guidance of a seasoned Bakersfield law firm, you can gain peace of mind that you are taking the right actions to get out of debt.

If you have questions as to whether or not Bankruptcy is the best financial remedy for you, contact Max Gardner for a free consultation. 661-888-4335