Perceptions about bankruptcy have been changing. In the past, bankruptcy was seen as a mark of failure, something shameful not to be discussed. Now, bankruptcy is more often recognized as what it was always intended to be–a powerful planning option to re-organize, rehabilitate and empower. Bankruptcy clears away obstacles. It enables payment of college tuition. It facilitates planning for retirement. It makes life full of possibilities again. It gives hope.
But not all obstacles can be overcome. Some debts cannot be discharged in bankruptcy. Some of these are most taxes, most student loans, criminal fines and restitution payments, court ordered child support, debts that arise as a result of fraud or misrepresentation and also debts that you forgot to list on your bankruptcy petition. See our previous article discussing these kinds of debts and their ability to be discharged.
Even here, however, there can be exceptions. Taxes can sometimes be discharged if they are old. Student loans can be discharged where there is extreme hardship. The damage of a Federal Tax lien can be minimized by motion in an appropriate case. A second mortgage can be eliminated in a Chapter 13 bankruptcy.
We are at the end of 2012 and the end of the worst recession since before World War II. Now is a good time to take an objective look at your financial circumstances and make a financial plan that will allow you to take full advantage of the opportunities the economic recovery
We can help. Schedule an appointment with one of our Partners to put their experience to work for you. An office conference with a Partner can be scheduled by contacting any of our staff at 602-277-4441.