CALL FOR A FREE
INITIAL CONSULTATION
813.254.5696

BRIDGING YOU TO A BRIGHTER FUTURE

Leftover Debt: What You Can Expect to Pay after Bankruptcy

Bankruptcy can free you from financial burdens that have plagued you for years. It can make your life easier and provide a fresh start, financially speaking. It can also help you get back on track and undo any damage that was caused by your own mistakes or by uncontrollable circumstances.

Despite all the good that can come from filing for bankruptcy, it’s not a magic pill. It’s a tool that can help you make a bad situation much better, but it isn’t going to magically eliminate all of your problems. It might not even eliminate all of your debt.

But isn’t the purpose of filing for bankruptcy to have your debts discharged so creditors can no longer force you to pay them?

Yes. But it’s more complicated than that.

Many types of debt are dischargeable, but there are exceptions and these exceptions apply to more cases than you might think.

For instance, child support and spousal support that you have failed to pay cannot be discharged under any type of bankruptcy. No matter what type of bankruptcy you choose, you will still be obligated to pay any money you owe, even if you’ve fallen far behind. What bankruptcy can do in these cases is alleviate other financial burdens and make it easier to pay what you owe in support.

Tax debt is also not always dischargeable in bankruptcy. Some older tax debts can be discharged, but the law is set up so a person who owes money to the IRS can’t use bankruptcy to get out of paying it. Recent income tax debt will not be discharged in bankruptcy.

There are also rules about student loan debt. Government loans are unlikely to be forgiven in bankruptcy, but you can enjoy some benefits related to private student loans.

Differences between Chapter 7 and Chapter 13 Bankruptcy Discharges

The chapter bankruptcy you choose also affects what can and cannot be discharged. For instance, leftover debt after filing for Chapter 7 might include:

  • Debt incurred by fraud
  • Priority or unfiled tax debt
  • Theft-related debts
  • Student loans
  • Criminal fines and restitution
  • Family support debts (child and spousal support)

If you had any of these types of debts going into a Chapter 7 bankruptcy, they’ll still be there once you’ve completed the process.

Chapter 13 offers a bit more flexibility, and might allow you to discharge non-support obligations to a spouse, government fines, and fines associated with some intentional torts. Many tax penalties are also dischargeable, even if you still owe the tax itself.

It’s also important to realize that liens survive bankruptcy. Your personal liability for the debt, but if the debt was secured by a lien on any of your assets, that lien will survive. The exception is if the court strips the lien – a process you can learn about here.

If you would like to know more about what debts you might have left over after your bankruptcy is complete, or you would like to know more about how filing for bankruptcy might help you deal with a financial crisis, contact the Law Office of Robert M. Geller at 813.254.5696.

Tampa Bankruptcy Law Blog

Managing Credit Card Debt: What Can Help You Get Things under Control

Managing Credit Card Debt: What Can Help You Get Things under Control

If you feel as if you are drowning in credit card debt and you aren’t sure where to find relief,...
Read More

My College Closed: Do I Need to Repay My Student Loans?

Though it might not happen to the world’s most famous universities, there are some colleges that go out of business....
Read More
Bankruptcy Overwhelm: Why Organizing Your Paperwork is So Important

Bankruptcy Overwhelm: Why Organizing Your Paperwork is So Important

Paperwork and Filing for Bankruptcy in Florida Filing for bankruptcy sounds simple enough, but it’s actually a complicated legal proceeding...
Read More
Bankruptcy Filers are at Risk for Scams: What You Can Do to Protect Yourself Post-Filing

Bankruptcy Filers are at Risk for Scams: What You Can Do to Protect Yourself Post-Filing

It’s a sad fact that no matter who you are or what your struggles in life include, there are people...
Read More
Five Tips to Help You with Bankruptcy Credit Counseling

Five Tips to Help You with Bankruptcy Credit Counseling

Bankruptcy Post Filing Education and Counseling Requirements If you’ve begun the bankruptcy process you already know about the education requirements....
Read More
Is a Business Loan Possible If I File for Bankruptcy?

Is a Business Loan Possible If I File for Bankruptcy?

Filing for Bankruptcy Filing for bankruptcy might make it seem as if your world has stopped, but the truth is...
Read More
What Should I Do to Prepare for My 341 Meeting of Creditors?

What Should I Do to Prepare for My 341 Meeting of Creditors?

The 341 Meeting of Creditors can be one of the most intimidating aspects of filing for bankruptcy but it doesn’t...
Read More
What Happens If I Die Mid-Bankruptcy?

What Happens If I Die Mid-Bankruptcy?

Life is unpredictable and so is death. Very few people are able to predict when they will die and in...
Read More
What Do I Need to Know about Property Seizure?

What Do I Need to Know about Property Seizure?

One of the scariest things that can happen when you’re dealing with out-of-control debt is property seizure. Creditors might legally...
Read More
I’m Self Employed – Can I File for Bankruptcy?

I’m Self Employed – Can I File for Bankruptcy?

When it comes to being self-employed, sometimes it seems the odds are stacked against you. Taxes, insurance, other expenses… the...
Read More

Contact Us

Search Website

Archive

Request a FREE Consultation

For The Next 5 Days Get A Free Book About Bankruptcy


 
comodo 10.0Robert Marc Geller
Robert Marc GellerClients’ ChoiceAward 2018 Robert Marc GellerReviewsout of 32 reviews LEA

We are A Debt Relief Agency.
We help people file for
bankruptcy under the Bankruptcy Code

Pay Online     Bankruptcy Courses    

Office Locations

$Law Offices of Robert M. Geller, P.A.
807 West Azeele Street
Tampa, FL 33606
T: (813) 254-5696
T: (800) 853-7549
F: (813) 253-3405
Maps & Directions


Tampa Law Office Map

Satellite Office

$Law Offices of Robert M. Geller, P.A.
125 5th Street South
(Wells Fargo Financial Center)
2nd Floor, Suite G

St. Petersburg, FL 33701
T: 727-532-3939
Maps & Directions


Map and Directions

Pasco Office

23526 State Road 54
Lutz, FL 33559
Maps & Directions


Maps & Directions

At the Tampa Bay law firm, the Law Offices of Robert M. Geller, P.A., we help people with consumer bankruptcy matters in the Tampa Bay-St. Petersburg,  Florida communities such as Clearwater,     St. Petersburg, Tampa, Thonotosassa, Riverview, Lutz, Plant City, Brandon, Carrollwood, Wesley Chapel, St. Petersburg Beach, Lakeland, Mulberry, Dade City, Pinellas Park, Largo, Seminole, Odessa, Oldsmar and Lithia, and counties such as Hillsborough County, Pinellas County, Pasco County, Polk County and Manatee County.