In recent years, many people in Missouri and throughout the country have been experiencing financial distress. In some cases, it is an easy fix, simply cutting back on unnecessary spending, generating more cash flow and buckling down to pay off debts. It is not always that simple, however. In some cases, finances can get so out of control that additional debt relief measures are needed, such as filing for bankruptcy.
Bankruptcy is a valuable resource for many people, who need immediate debt relief and want to wipe their financial slates clean to start afresh. However, there are some types of debt that are not dischargeable through bankruptcy. It’s important to know more about this topic before filing a petition.
Debts that creditors prove are associated with fraud or other illegal activity
If a creditor can show that a particular debt arose through fraudulent activity, the debt will remain, even after the person in question applies for individual bankruptcy, such as the Chapter 7 program. This is also true for debts that were incurred because of a breach in fiduciary duty, for instance, being ruled at fault and ordered by the court to pay compensation to a recovering car accident victim. Other types of non-dischargeable debts include child support, taxes owed, and, in many cases, payments associated with a divorce settlement.
Determining which type of bankruptcy program best fulfills a need
It is possible for someone considering filing for bankruptcy in a Missouri court to qualify for more than one program. Asking a bankruptcy law attorney to review one’s case provides immediate legal support that can help a person determine which type of bankruptcy would be best to overcome a particular financial crisis. This is especially true for business owners who are hoping to be able to retain ownership and keep their doors open to the public.