Share:

Life is unpredictable, and even those who track every dollar they spend can end up in dire financial straits. If you have accumulated an overwhelming amount of debt in recent years and want to explore ways to improve your situation, turn to William A McWhorter in Pell City, AL. As a seasoned bankruptcy attorney, he can answer all your questions on the filing proceedings, including the following common concerns explored below.

Bankruptcy Attorney Answers Frequently Asked Questions

1. Will Declaring Bankruptcy Discharge All My Debts?

Unfortunately, there are certain kinds of debt that even bankruptcy proceedings cannot discharge. These include criminal fines and penalties, alimony obligations, and child support payments. In most cases, student loans and tax debts are not dischargeable, either.

2. How Is Chapter 13 Different From Debt Consolidation?

bankruptcy attorneyChapter 13 is often called “reorganization bankruptcy” because it requires a reasonable plan for paying off at least some of the debt. After three to five years, the payment plan ends, and any remaining amount due is discharged.

Debt consolidation, on the other hand, involves taking out a loan to pay back multiple creditors and then handling that loan by making a single monthly payment. Although this may be a smart financial approach for those who have a fairly reasonable amount owed, it does not discharge any debt, making it ineffective for individuals who have accumulated far more in medical bills or credit card expenses than they can conceivably pay off. 

3. Can I Leave Some Debts out of the Proceedings?

You may want to retain certain accounts while discharging others, but bankruptcy law requires debtors to treat all creditors equally. When filing, you must include all the lenders whom you owe money to in the initial petition. It is essential to be thorough when making this list because if you fail to include a particular creditor, the lender will still close the account once the bankruptcy is reported, but you will be responsible for paying the debt because it was not discharged with the others.

4. Does Bankruptcy Wipe out Debt for a Co-Signer, Too?

If you have co-signers on any of your accounts, they will still be responsible for the debt if you discharge it by declaring bankruptcy. In some cases, it is possible to protect a co-signer by filing for chapter 13. If the debt is high on the priority list, it will likely be paid off over the course of the payment plan. If it is nonpriority, unsecured debt, though, some portion of it may still remain after the plan has ended, and the co-signer will be responsible for it.

If you have additional questions about filing for bankruptcy, turn to William A McWhorter in Pell City, AL. As a seasoned bankruptcy attorney who has served the community for over 20 years, he will determine the best possible route to your financial freedom. Reach out through his website or call (205) 338-4411 to schedule an initial consultation with a compassionate lawyer today. 

tracking