What Will I Owe After Bankruptcy?

October 16th, 2009 by Reed Allmand

debt and bankruptcy

When a debtor files bankruptcy there are debts that are dischargeable and other debts that cannot be discharged during bankruptcy.  Let’s take a look at some of the things you may still need to pay after your bankruptcy discharge:

  1. Student Loans. If you file bankruptcy and owe student loans, they will most likely not be discharged in bankruptcy unless you were able to prove that repayment would be an unreasonable burden.
  1. Child Support.  Even if child support payments would be a burden to repay, filing bankruptcy will not get rid of them.
  1. Certain Tax Obligations. Although taxes can be discharged in bankruptcy, they must meet certain criteria. Since every bankruptcy case is different discuss your tax liabilities with your bankruptcy attorney before filing.
  1. Mortgage.  When filing bankruptcy, you may be able to save your home from foreclosure. However you still need to pay the mortgage as agreed to avoid a future foreclosure after your bankruptcy discharge.
  1. Car payment. Like your home, you can often keep your car during a bankruptcy; but you still need to pay the note.  After your bankruptcy discharge, if you decide to keep your car you will be required to pay the note or face repossession.
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About Reed Allmand

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Allmand's vision is rooted in his own financially precarious childhood in Abilene "My father always had difficulty holding a job and supporting our family, so after my parents divorced when I was 12, my sister and I got jobs to help make ends meet," he recalls. "I remember what it felt like as a child to worry that our car would be repossessed or home foreclosed on."

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FAQ

Why do I need to submit a new wage order when I modify my plan

When we modify your bankruptcy plan we are changing your plan payments. This means that we have to get with your employer and change the terms and amount of your wage order. The only way we can do that is by filling out a new wage order form.  

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What happens if the stay terminates on my home?

If the bankruptcy stay terminates on your home that means that even though your in bankruptcy, your creditor can pursue all there legal remedies they can pursue if you were not in bankruptcy. This includes foreclosure, and having your house sold and evicting you from your house.

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