Boca Raton Bankruptcy Attorney

What Bankruptcy Cannot Do For You

Both Chapter 7 and Chapter 13 bankruptcy are powerful financial tools which can give you a chance to regain your footing during a financial crisis by eliminating many debts. However, bankruptcy also has legal limits which determine what kinds of debts it cannot remove, as well as other restrictions.

• Bankruptcy cannot eliminate child support and alimony payments
  Both child support and spousal support (alimony) payments are unaffected by bankruptcy and will remain regardless of whether you file for bankruptcy or not. Also, most states have a minimum child support payment which you are obligated to provide regardless of your financial situation. Furthermore, if you apply for Chapter 13 bankruptcy, your repayment plan will have to account for these payments as well.
• Bankruptcy cannot eliminate most tax debts
  
  In most cases, tax debts cannot be eliminated by bankruptcy proceedings. There are some very limited exceptions, such as old debts due to unpaid income taxes. Even this, however, has a long list of eligibility requirements to be met. Only a bankruptcy lawyer will be able to help you determine what you are eligible for.
• Bankruptcy cannot prevent property repossessions by a secured creditor
  
  Although bankruptcy can eliminate debts, if a creditor has a secured debt – meaning they have a lien on your property – the creditor can repossess the property even if the debt is eliminated.
• Bankruptcy cannot eliminate most student loan debts
  
  Generally, student loan debts cannot be wiped out by filing bankruptcy, except in certain special cases where you are able to prove that paying off the debts would cause you “undue hardship.” In order to qualify for this, you would not only have to demonstrate an inability to pay off your debts right now, but also that it would be very unlikely for you to be able to pay them off in the future. This is not an easy standard to meet.

If you are going through financial troubles and you have questions about bankruptcy, call a Boca Raton bankruptcy lawyer from the office of Eric N. Klein & Associates at 561-353-2800. Their experienced bankruptcy attorneys can help you determine whether filing for bankruptcy is the right thing for your financial future and ensure that you get all the relief you are entitled to.