Filing for bankruptcy can be an overwhelming experience for individuals who have struggled to make ends meet. Though it is not uncommon for Pennsylvania residents to seek the protections of the bankruptcy courts, many people do not feel comfortable managing the process on their own. For that reason, it is not uncommon for filers to work with bankruptcy attorneys to help make sure that their cases stay on track.
One of the most common forms of personal bankruptcy that individuals pursue is Chapter 7 bankruptcy. Chapter 7 bankruptcy is often known as liquidation bankruptcy as it involves the liquidation of a debtor’s assets for the purposes of repaying his creditors. Though liquidation bankruptcy can sound scary, there are a number of exemptions a debtor may use to protect some of her real and personal items of property.
After selling off his assets and providing his creditors with the proceeds, a debtor may feel that all of his outstanding financial obligations should be forgiven. However, there are some debts that cannot be discharged through bankruptcy. Obligations such as unpaid child support, student loans, and owed taxes generally cannot be forgiven in a traditional bankruptcy proceeding.
Additionally, some fees or costs associated with going to court cannot be discharged through personal bankruptcy. Debts incurred that were not included in the schedule of debts used during the bankruptcy process will not be discharged. There are other debts that may survive bankruptcy as well and readers should talk to their lawyers about their own debt-related questions.
In general, personal bankruptcy is a great way for an individual to relieve himself of his debts. It is important for him to remember, however, that it is possible for some of his debts to remain even after his bankruptcy discharge. As every bankruptcy case is different, readers are asked not to rely on this post as legal advice.