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What Are The Limits Of Bankruptcy?
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Bankruptcy may not eliminate every financial problem and it may not be the right step for every individual. With bankruptcy, it is usually not possible to:
- Eliminate the legal rights of “secured” creditors, i.e., a creditor has taken a mortgage or other lien on property as collateral for a loan. Examples are car loans and home mortgages. With bankruptcy, a person may force secured creditors to take payments over time and bankruptcy may eliminate the obligation to pay any additional money on the debt if you decide to give back the property. Generally, a person may not retain possession of secured property unless he continues to make payments.
- Discharge debts which bankruptcy law gives special treatment, such as child support, alimony, most student loans, court restitution orders, criminal fines, and most taxes.
- When a relative or friend has co-signed a loan, and the consumer discharges the loan in bankruptcy, the cosigner may still have to repay all or part of the loan.
- Discharge debts that arise after bankruptcy has been filed.
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You may want to have more information about our other services: Detroit bankruptcy attorney and Michigan bankruptcy attorney.
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