What Debts Will Bankruptcy Wipe Clean?
If you are facing an overwhelming amount of debt, you may feel like your back is against the wall. However, you may be able to file for Long Island bankruptcy and wipe the slate clean. Before filing for bankruptcy, you should first contact an experienced attorney.
Debts that bankruptcy will wipe clean
Unfortunately, many people believe bankruptcy will remove all forms of debt. This is not the case.
Below is a list of the types of debt that bankruptcy may wipe clean:
- Personal loans
- Credit card debt
- Medical or legal bills
- Membership fees
Debts that bankruptcy will not wipe clean
Following is a list of debts that bankruptcy will not eliminate:
- Child support
- Some taxes
- Student loans
- Alimony
If you are considering filing for bankruptcy, you should speak to Long Island bankruptcy attorneys as soon as possible. Bankruptcy law can be difficult to understand, and an experienced lawyer can provide you with sound legal advice.
Different types of bankruptcy
Bankruptcy is a legal procedure that liquidates your business or property in order for you to pay back your debts. Depending on your situation, different forms of bankruptcy may be more appropriate.
Below is a list of the various types of Long Island bankruptcy:
- Chapter 7: Most of the time, when you think of bankruptcy, you are probably thinking of Chapter 7 bankruptcy. This form of bankruptcy eliminates most of your debts and allows you to have a fresh start.
- Chapter 11: Chapter 11 bankruptcy is usually used for businesses and is designed to reorganize debts so that they are more manageable. Chapter 11 is best suited for businesses that are profitable but simply need assistance in restructuring and repaying debts. The advantage of a Chapter 11 bankruptcy is that it allows a business to continue to operate and generate revenue while simultaneously paying back debts. For more information on Chapter 11, contact a Long Island bankruptcy law firm.
- Chapter 13: Chapter 13 is best suited for people who feel they can pay back their debts or have a moral obligation to do so. Unlike Chapter 7, Chapter 13 bankruptcy restructures debts so that a person can pay them back over a period of approximately three to five years.
Contact the Nassau County and Queens law firm of Mavrides, Moyal & Associates, LLP
Find out how our experienced attorneys can help you. Call or contact Mavrides, Moyal & Associates, LLP online for a free initial consultation. We offer evening and weekend appointments by request, and our Manhattan and Long Island offices are convenient to mass transportation and parking.
