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Debts That Survive Bankruptcy |
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Even though bankruptcy gets you off of the hook for unsecured debts, there are some debts that you cannot escape. These are usually debts that you have secured with property or that the government has secured for you, such as student loans. You also cannot get out of any currently owed or back owed child support or money that you owe to someone whom was injured because of your negligence, such as a DUI/DWI. These types of debts are known for "surviving" all bankruptcies, usually no matter what the circumstances are. In the case of student loans, these can be discharged in very extreme circumstances, such as in the case of a disabled person who will never be able to hold down a normal job in order to repay that debt. For most, however, they will need to find someway to repay these debts, since they will not just go away though bankruptcy. The best way to handle debts that you know will survive your bankruptcy is to get a payment plan in place before your bankruptcy is discharged. You can do this by calling the creditor(s) in question and trying to set up a monthly payment that is affordable to you. You will need to figure out what this amount is before you call, instead of trying to figure it up on the phone. You may want to have at least two figures ready: 1) the amount you can comfortably pay, with a little money left over at the end of the month so that you do not feel so strapped for cash and 2) the amount that you can pay without having to sacrifice necessities, such as food, rent, and gas for your car. While it would be nice to get the creditor to agree to the first amount, the truth is that they have most of the power at this point and they know it. Make sure you are not rude to the representative you talk to and try to get them to go for the lesser amount first. If they won't go for it, hopefully they will take the second amount and not request more than you can afford. You may end up needing to cutting out some non-necessity expenses. Getting a payment plan in place for these debts may keep those companies from coming for the items that you have secured the loan with and show the judge that you are trying to pay off what you can. Anytime you are in court, how the judge feels about your situation can always help you or harm you. In this case, if the judge feels that you are doing the best that you can, it may help you when he has do decide whether to side with you or your unsecured creditors when they come to dispute your bankruptcy. If those creditors are successful, you could end up paying debts that could have been discharged in your bankruptcy, which will cause the opposite effect of what you are trying to achieve with your bankruptcy. |
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