We’re all familiar with the types of debt associated with bankruptcy. Credit card bills come to mind, along with mortgage payments, student loans and car payments. Whether or not they can be discharged during the process, those who file are at least aware that they will be a factor. But not all expenses are as obvious, and those can be the ones that can factor into your payment plan in a way that you didn’t anticipate.
These are expenses just like anything else, and can factor into your bankruptcy proceedings. But it also depends on whether or not you’ll lose your home in the process. If your home is part of your assets allotted for liquidation, unpaid homeowners’ dues are moot. But if you’re planning to keep your home, it’s best to meet with your homeowners’ association to work out a solution that fits all parties.
Judgements Against You
This can include anything for which you were found legally and financially liable. The most common types of debts in this category stem from a car accident or personal injury that was settled in court. These debts are dischargeable under Chapter 7 bankruptcy law.
Sometimes when we fall on hard times, we reach out to others for loans to tide us over. These types of personal loans are eligible for discharge under Chapter 7.
It’s worth noting, though, that once you’ve decided to file for bankruptcy your most recent financial records will be an open book for the courts. If you’ve shown preferential treatment in paying back certain loans first, there’s a chance those payments could be reclaimed by the trustee in order to redistribute those funds fairly among your creditors.
The major thing to remember is that in bankruptcy, honesty is always the best policy. There may be a few expenses you didn’t count on declaring, but hiding or concealing payments, assets, income or debts very rarely turns out well for the debtor.
Your finances are complicated. Let an attorney provide an expert opinion and put those fears to rest.