Choosing to file for personal bankruptcy is a difficult process that a person should not take lightly. Though bankruptcy can provide a New York resident with the opportunity to eliminate or reorganize his debt into a manageable sum, there are many important issues to consider before signing a bankruptcy filing and seeking bankruptcy protections. One of those considerations is the classification of debts as dischargeable or nondischargeable.
Dischargeable debt is debt that can be eliminated through bankruptcy. Under Chapter 7, this can be significant since it is the form of bankruptcy that allows a debtor to liquidate his financial obligations. However, there are certain kinds of debt that cannot be eliminated and these debts are classified as nondischargeable.
Taxes, child support payments, alimony sums and many other forms of obligations are not necessarily dischargeable under bankruptcy law. As such, a debtor may not be able to simply wipe them out with the liquidation provisions in Chapter 7. Such debts may linger after a bankruptcy filing is complete and may continue to financially harm a debtor even after he or she has satisfied the bankruptcy court’s mandates.
Aside from evaluating whether one’s debt is dischargeable or nondischargeable, there are many other considerations that a debtor must make before moving forward with bankruptcy. Such considerations can be critical to the debtor’s success in bankruptcy court. In order to be sure that the important decisions about one’s bankruptcy filing are made, it can be helpful for a debtor to work with a bankruptcy attorney.
Attorney Ronald V. De Caprio can help you decide if filing for bankruptcy is a good financial decision. After evaluating your debts and existing bankruptcy exemptions, he and his firm can provide you with the tools you need to make the right decision based on your needs. To learn more about his practice in the bankruptcy field, a debtor can visit the firm’s website on nondischargeable and dischargeable debts.