Many people have debt in Miami and having debt is not always a bad thing. It allows people to make purchases they need such as homes, vehicles and many other items. People also may have some credit card debt and student loans. All of this debt is fine if people are able to make the monthly payments they need to on the debt. However, if they fall behind on payments, the debt could become a problem.
People may fall behind because people have an unexpected event occur that drastically changes their circumstances. This could be a job loss or potentially an illness or injury that forces people to miss work and incur significant medical bills as a result. People in these situations may not be able to continue to make the monthly payments. This may result in people incurring even more debt and eventually find themselves buried in debt. People in this position may be able to rid themselves of the debt through Chapter 7 bankruptcy.
Non-dischargeable debt in Chapter 7 bankruptcy
People may have many different forms of debt and while much of the debt people have can be discharged through Chapter 7 bankruptcy, there are certain debts that will not be discharged. These include, but are not limited to:
- Student loans unless they are causing an undue hardship
- Newer federal and state taxes
- Child support and alimony
- Government fines and court fees
- Debts incurred because person caused personal injury or wrongful death
- Debts from embezzlement or theft
- Debts from fraud, willful or malicious acts
- Debts from luxury goods or cash advances made close to the filing of bankruptcy
There are other debts that may not be dischargeable for people in Miami, but many debts that people have can be discharged which means that they will not need to pay them back. These include credit card debt and medical debt. Bankruptcy can cause people some concern, but it also can be a good way for people to achieve a fresh start. Experienced attorneys understand the benefits of bankruptcy and may be able to guide one through the process.