Just because you file and are granted bankruptcy doesn’t mean you won’t be responsible for paying back some of the credit card debt you’ve accrued. Some transactions – particularly ones made for non-essentials after the debtor was unable to make payments on time – are looked at unfavorably by the courts. If the courts see that you were unable to make steady, on-time payments, but were still charging nonessential items like travel, entertainment, or electronics to your card, they will likely be hesitant to discharge those debts.
If you are considering filing for bankruptcy, the best thing to do is to immediately stop using credit. All types of credit card transactions should be stopped, particularly if they are in a non-essential category or for something other than food or gas. Even essential purchases can fail to be discharged if your card use was recent.
Other types of debt that will likely not be discharged through bankruptcy are debts for taxes, fines, alimony, or child support. Student loan debts are equally as difficult to have discharged – mainly because many of them are funded in part or in full by the government. You might get a portion of the interest rates lowered but depending on the lender of the loan, full discharge of student loan debt is unlikely.
Filing for bankruptcy might be a good option if you have mostly consumer debt on high-interest credit cards. If most of your debt is not consumer debt, or is debt related to student loans, bankruptcy might still be a viable and wise option for you. An attorney will be able to look at your specific situation to help you determine all of your options, including whether or not bankruptcy is the best idea for you to get back on track financially.
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