When a person finds themselves in a situation where they can no longer pay their debts and feel as though they will not be able to ever repay those debts, it may be time to consider filing for bankruptcy. Financial debt can be incredibly overwhelming. People may find themselves in bad financial situations due to a divorce, a costly and unexpected medical emergency, or simply biting off more than you can chew when making a business deal. Bankruptcy is never anyone’s ideal situation but it may be the best option in a situation where your options are limited and not very good to begin with. Filing for bankruptcy can allow a person who feels as though they are drowning in debt to default on their debts and start fresh.
When you file for bankruptcy, you are allowed to discharge certain debts. It is important to know that not every type of debt can be cleared. Some debts that may be able to be discharged during a bankruptcy can include credit card debt, medical bills, and certain loans. However, there are also financial obligations that you will still be held responsible for whether or not you file for bankruptcy. A debtor is not permitted to default on student loan debt, child support payments, spousal maintenance payments, state and federal taxes, and any debts that were not included on your petition when you initially filed for bankruptcy. Therefore, it is very important to make sure you have included all of your debts when you submit your bankruptcy petition.
If you have questions about whether it would be in your best interest to file for bankruptcy in New Jersey, contact an experienced New Jersey bankruptcy attorney today for a free consultation.
Juan C. Velasco, Esq. is a trusted attorney who has been serving the New Jersey area for over 25 years. If you are in need of experienced legal counsel, please contact Velasco Law Office and we will be happy to assist you.