Declaring bankruptcy in Alabama can be very helpful if you are facing serious financial ruin. Doing so can help you take control of your finances so that you don’t continue to spiral into debt.
However, before filing bankruptcy, it’s important to keep in mind that not all types of debts may be erased just for filing.
These are the debts that won’t be discharged for filing bankruptcy:
The Particulars Vary According to Which Type You File
While the particulars vary a bit among the different chapters, the following are the most common forms of non-dischargeable debts across the board:
- Alimony and child support.
- Specific unpaid taxes, such as tax liens.
- Some federal, state and local taxes may qualify for discharge if they are several years old.
- Debts you incurred as a result of willful and malicious injury to someone else or another’s property.
- “Willful and malicious” is defined as deliberate and without justification.
- In Chapter 13 bankruptcy, this is only applicable to injured people as property damage debts may be eliminated.
- Debts as a result of death or personal injury that you caused while operating a motor vehicle while intoxicated from alcohol or another substance.
- Debts you neglected to list in your bankruptcy filing.
If you file under Chapter 7, you must also continue paying for any condominium or cooperation association fees, in tandem with other debts that weren’t eliminated in a previous bankruptcy.
You can probably keep your vehicle if you reaffirm your car loan and keep making payments. In a similar vein, you may also be able to keep your home even if you owe money on it, so long as you keep making payments and don’t have more equity than you are allowed to retain under Alabama state bankruptcy laws.
If you need help taking control of your financial health, we may be able to help. Don’t hesitate to reach out right away with any bankruptcy questions you may have.