The statistic that half of Americans could not come up with $400 in an emergency without borrowing is certainly alarming, but it is hardly surprising. Debt and financial hardship are huge problems in the United States. For many Americans, every paycheck means picking and choosing which bills to pay on time this pay period. It is easier to get relief from some debts than others. Many people see bankruptcy as their only option to start their financial situations over with a clean slate, but bankruptcy does not erase all your financial obligations. One financial obligation you are still responsible for, even if you file for bankruptcy, is child support.
What You do and do Not Owe After Filing for Bankruptcy in Florida
Bankruptcy can free you from many of your debts. Debts that are “discharged” during bankruptcy are no longer your responsibility to pay. It does not, however, free you of all your financial obligations. With car loans and home mortgage loans, the car or house is collateral, meaning the lender can repossess it if you do not pay. If you declare bankruptcy, the lender can no longer pursue you for payments, but they can take back your car or house that is securing the loan.
Some debts, however, are non-dischargeable, which means that you still owe them even if you declare bankruptcy. Many non-dischargeable debts are obligations imposed on the debtor by a ruling in court. The following debts are non-dischargeable according to Florida bankruptcy laws: Continue reading ›