Frequently Asked Questions about Bankruptcy

What is the difference between Chapter 7 and Chapter 13 bankruptcy? Chapter 7 bankruptcy is called a Liquidation bankruptcy and one can only file under it if his income is low enough (according to the Means Test). Chapter 7 bankruptcy writes off all debts instantly and at once, leaving the debtor “clean”. His bank cardsContinue reading

Can bankruptcy deal with alimonies and Student’s debt?

According to the Bankruptcy Code, not all types of debts can be discharged. Even if one is filing under Chapter 7 which implies instant debt liquidation, some debts will stay as his financial obligations till the end of life. What are these non-dischargeable debts? These are alimonies, child support, taxes and Student’s debts. Still, manyContinue reading