Posted on: 29th Oct, 2005 11:37 am
Which debts can't be wiped out in bankruptcy?
Hi Rebecca,
There are some debts which can't be wiped out in bankruptcy.
They may be listed as follows -
Only secured debts get discharged. Generally if the euity interest in the property gets exempted, then the debtor may be successful in retaining the property by redemption.
Hope I could satisfy your query.
God bless you.
For MortgageFit,
Samantha
There are some debts which can't be wiped out in bankruptcy.
They may be listed as follows -
- Taxes
- debts arising out of any misconduct on the part of the debtor
- If you are injured or dead due to some illegal behavior on your part like accident while driving after consuming alcohol
- any debts which didn't get discharged during previous bankruptcy
- student loans
- criminal fines or penalties
- child and spouse support
Only secured debts get discharged. Generally if the euity interest in the property gets exempted, then the debtor may be successful in retaining the property by redemption.
Hope I could satisfy your query.
God bless you.
For MortgageFit,
Samantha
Shall I lose my home after bankruptcy?
Hi Susane,
There is no need to panic of losing your home only because you filed a bankruptcy. But bankruptcy is not made for punishing people for failing to repay his debts.
Depending on the circumstances and the type of bankruptcy filed, it is going to be decided whether a person is going to lose his home or not. If you file a chapter7 bankruptcy and you are found behind on your mortgage payments, then you may lose your home. Again it depends on the amount of equity you have in the property and the amount of exemption for which you are entitled. If the total amount of debt, against your home, does not exceed the market value, you may lose it if there is no homestead exemption to entitle you for most of the equity.
Again if you are current in your mortgage payments and filed chapter13 bankruptcy, then you are not going to lose your home provided you continue to repay your mortgage loan.
Hope this information will help. For some more details on bankruptcy you may refer here.
God bless you.
For MortgageFit,
Samantha
There is no need to panic of losing your home only because you filed a bankruptcy. But bankruptcy is not made for punishing people for failing to repay his debts.
Depending on the circumstances and the type of bankruptcy filed, it is going to be decided whether a person is going to lose his home or not. If you file a chapter7 bankruptcy and you are found behind on your mortgage payments, then you may lose your home. Again it depends on the amount of equity you have in the property and the amount of exemption for which you are entitled. If the total amount of debt, against your home, does not exceed the market value, you may lose it if there is no homestead exemption to entitle you for most of the equity.
Again if you are current in your mortgage payments and filed chapter13 bankruptcy, then you are not going to lose your home provided you continue to repay your mortgage loan.
Hope this information will help. For some more details on bankruptcy you may refer here.
God bless you.
For MortgageFit,
Samantha