Your Guide to Non-dischargeable Debts

non-dischargeable debtsYou work hard and play by the rules. Unfortunately, this is not always enough to stave off debt and financial ruin. You may have lost your job through no fault of your own, you may have suffered an injury or illness that has kept you out of work, or you may have been compelled to take in an ailing family member who needs constant supervision and support. The circumstances that have overtaken your life may have put you in a bad financial position. You have tried to keep afloat, but the tide of debt continues to pull you down. Bankruptcy may be your best option. It may be the only way to resolve your financial problems and rebuild your life. 

To declare bankruptcy, you will need the help of a bankruptcy attorney Brooklyn. Although it is viewed negatively in society, bankruptcy is actually a form of legal protection. It is a way to defend yourself against creditors. The latter have rights to reclaim their money. Under bankruptcy laws, you also have rights. It is the job of bankruptcy attorneys Brooklyn to protect these rights and pursue your interests during the bankruptcy process. 

Chapter 7 Bankruptcy 

If you have sunk deep into debt and have no prospect of climbing your way out of it, filing Chapter 7 bankruptcy may be your best option. Chapter 7 is a general liquidation of your debt. Most of your credit card and loan debt will be discharged under Chapter 7. This may give you the breathing space you need to start over. 

Nondischargeable Debt 

This is a category of debt that cannot be eliminated through a bankruptcy proceeding. Student loans, tax debt, and child support and alimony payments, including those in arrears constitute the most common kind of nondischargeable debt. Additional debt that may be considered nondischargeable include debts from a marital settlement or divorce decree, debts incurred based on fraudulent acts, debts from the wilful destruction of another person’s property, and debts that result from embezzlement, larceny, or a breach of fiduciary responsibility. 

A declaration of bankruptcy is in many ways the start of a negotiation. Bankruptcy protects you against direct harassment from creditors, but the latter can still make claims on your property. They can dispute charges that you want to remove through bankruptcy. It is up to the court to decide which claims to honor. Brooklyn bankruptcy attorneys have the expertise and experience to limit such claims. 

If you have filed bankruptcy because of debt you incurred in a personal injury case, you must still adhere to the settlement agreement. Personal injury settlements are nondischargeable debts. Even if you do not have the money at present to begin paying it, the debt will remain until you have paid it off. 

It is important to remember that the bankruptcy court ultimately decides what is and is not a nondischargeable debt. For example, the court may decide to declare all your debts as nondischargeable if you destroy records of your finances, transfer property in an attempt to hide it from your creditors, or fail to complete a course in finance management. In certain circumstances, you may have all your debts declared nondischargeable if you previously filed for bankruptcy and had your debts cleared. 

Managing the Bankruptcy Process 

Technically, bankruptcy gives you legal protection. You will nevertheless be at the mercy of the courts and your creditors. You need to exercise some control over how the process is managed. Brooklyn bankruptcy attorneys can provide you the required expertise. Brooklyn bankruptcy lawyers know the law and how the courts work. The bankruptcy attorney in Brooklyn you hire will help you get the best deal possible during your bankruptcy proceedings. 

If you are heading for bankruptcy, then you should consult with bankruptcy attorneys in Brooklyn at Ursulova law offices.            

Ursulova Law offices, P.C.

Contact Ursulova Law Offices, P.C. to find out how our NY Bankruptcy Attorneys can help you today. Our offices are located in New York, Brighton Beach, Brooklyn and Garden City.


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