One of the most widespread misconceptions about bankruptcy is that federal taxes cannot be included in a discharge of debts. This obviously is not the case. Including taxes may not be simple, but it is possible if the following conditions are met:
*The tax debt must be older than three years. This indicates that the taxes in question were due at least 36 months ago.
*The return must have been lodged in good faith two years ago or more.
*The tax assessment must be at least 240 days old, irrespective of when it was generated.
*The tax assessment cannot have resulted in whole or in part from fraud or tax evasion.
Personal taxes may be included in the discharge of debts under Chapter 7 bankruptcy if these conditions and all other bankruptcy requirements are met.
Credit Cards: Americans' credit card debt is excessive. This is a common cause for many individuals to petition for Chapter 7 liquidation or Chapter 13 reorganization bankruptcy. However, as unsecured debt, credit cards are relatively simple to include in a bankruptcy proceeding, provided that the charges in question are not fraudulent, no-pay, or first-pay defaults, and that cash has not been withdrawn from the account in the twelve months prior to the initial bankruptcy filing.
Filing for bankruptcy will halt all efforts to foreclose on a mortgage until the case is discharged. Some individuals may be able to retain their home if their equity (if any) is exempt. Many filers, however, merely wish to be free of an underwater or negatively amortizing mortgage or equity line of credit. These types of debts can typically be readily included in a bankruptcy.
Secured Loans: If the collateral for a secured loan has non-exempt equity, the bankruptcy trustee will almost always liquidate the collateral to satisfy creditors. Therefore, the majority of secured loans are dischargeable through bankruptcy, but in many instances the collateral is lost.
As another type of unsecured financial obligation, medical bills can be readily included in a debt discharge. This is true if the applicant can demonstrate that they do not have sufficient (or any) disposable income to pay any medical-related debts.
The vast majority of other debts fall into one of these categories, either as unsecured or secured debts, with or without equity. It is essential to consult with a professional bankruptcy attorney in order to maximize the protections offered by a bankruptcy, given that the circumstances of each individual are so immensely different and state laws vary considerably.
" - https://www.affordablecebu.com/
