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Frequently Asked Questions (FAQ)

Is bankruptcy right for me?

Whether bankruptcy is an option for you depends very much on your particular financial circumstances and what you hope to accomplish. You should consider first whether bankruptcy will “discharge” (i.e. release you from liability) enough of your debts. Debts that are “non-dischargeable” will have to be paid even after bankruptcy. The primary debts that are non-dischargeable are as follows:

  • Income tax debt, unless:
    – the debt is more than 3 years old, and
    – a correct & timely tax return was filed.
  • Student Loans, unless repayment would cause undue hardship to the debtor;
  • Domestic Support Obligations (i.e. Child Support & Alimony);
  • Debts resulting from injury by willful or malicious acts or through fraud; and
  • Court judgments for injuries or death resulting from driving while intoxicated.

Assuming you do have sufficient debts to make bankruptcy worthwhile, you should also determine what property will be taken and sold to pay your creditors and what property you will be allowed to keep. See Exempt and Nonexempt property.

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