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Some debts not dischargeable in Chapter 7 bankruptcy

At some point in time, many Kentucky residents realize that enough is enough. The bills keep coming in and collectors keep calling. However, for any number of reasons, there is simply not enough money to meet each of the obligations. Rather than continue to let the situation get worse, it may be time to take action and file for Chapter 7 bankruptcy.

Once Chapter 7 bankruptcy is complete, the majority of debts (and sometimes all) are discharged. In addition, certain assets may be taken in the bankruptcy. These assets are sold as a means to repay some of the creditors.

While many believe that all debts are discharged under Chapter 7 bankruptcy, it is important to note that this is not necessarily the case. For example, child support and alimony are items which generally must continue to be paid. Regardless of the parent's financial condition, he or she is still responsible for the child. Another item that is not usually discharged is recent taxes. This included both federal and state taxes.

Student loan debt is a soaring problem for many throughout Kentucky. However, in most instances, this debt is not dischargeable. In order to include this debt in the bankruptcy, the filer must be able to show that it is a hardship. He or she must be unable to pay this debt now and will not be able to pay this debt in the future. To attempt to include student debt in the bankruptcy, it must be applied for separately after the initial bankruptcy has been filed.

For many throughout Kentucky, Chapter 7 bankruptcy is the answer to their growing financial problems. Sometimes it is best to just start over. By working with an experienced attorney, one will be able to review the available options and determine which one is the most appropriate.

Source: bankruptcy.findlaw.com, "Debts that Remain After a Chapter 7 Discharge", Accessed on Dec. 21, 2016

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