Will a Chapter 7 bankruptcy really wipe out all my debt

Will a Chapter 7 bankruptcy really wipe out all my debt

chapter 7 bankruptcyYes, with some exceptions. Bankruptcy will not normally wipe out:

(1) money owed for child support or alimony, fines, and some taxes;(2) debts not listed on your bankruptcy petition;(3) loans you got by knowingly giving false information to a creditor, who reasonably relied on it in making you the loan;(4) debts resulting from “willful and malicious” harm;(5) student loans owed to a school or government body, except if:– the court decides that payment would be an undue hardship;(6) mortgages and other liens which are not paid in the bankruptcy case (but bankruptcy will wipe out your obligation to pay any additional money if the property is sold by the creditor).

Please note that although Bankruptcy laws are codified by the Federal Government, (which means that it applies to all States), there are State specific regulations which apply depending on your State of residence, for instance, the homestead exemptions, and State specific laws such as the protection of annuities and other valuable exemptions which the individual seeking bankruptcy protection should take advantage of.

That is why it is very important for you to seek the advice of local counsel so you can be properly advices and to take full advantage of your legal rights and protections