If you are considering filing for bankruptcy, it is important that you understand the debt that can be discharged and the debt you will have to continue to make payments on. Even with a Chapter 7 filing, there are many debts that cannot be eliminated. To fully understand how a bankruptcy will affect your finances, you would have it in your best interest to discuss your situation with a NJ bankruptcy attorney.

Debt That Cannot Be Discharged

Not all debts can be discharged with a bankruptcy filing. Debts that cannot be included are:

• Student loans
• Child support
• Back taxes
• Some credit card cash advances
• Fraudulent debt

Credit card debt is one of the major forms of unsecured debt that can be discharged in a bankruptcy proceeding. Cash advances from a credit card company, however, have many requirements that need to be met in order to be considered for discharge.

Recent Cash Advances

It is considered fraudulent to receive a cash advance and then file for bankruptcy with the intent of not paying back the advance. A cash advance over $750 that was received within 70 days of filing for bankruptcy will not be discharged. Chapter 7 bankruptcy requires the full cash advance to be paid back before other debts are discharged. When a cash advance cannot be paid back in full, a payment arrangement will be made to clear the cash advance debt.

Utilizing Multiple Banks

It may be necessary to move your money to a bank to which you do not owe money. The money you have in an active checking or savings account that is with the same bank where you have debts, may take that money to help cover your debts before your debts are discharged. Having an account separate from a location where you have debts will protect your liquid assets.

Paying Back Your Debt

It is fraudulent to spend money that you know will be discharged. So, you may not max out your accounts just because you are filing for bankruptcy. Your intent to pay back your debts will be considered when you file for bankruptcy protection. It is important that you are clearly making all the payments you can and that you are attempting to live within your means.

New Jersey Bankruptcy Attorneys

Filing for bankruptcy is an opportunity to eliminate your debts and reestablish your credit. Bankruptcy court proceedings can be complicated and lengthy. Anyone considering filing for bankruptcy has it in their best interest to contact a New Jersey bankruptcy law firm.

If you are considering filing for bankruptcy, please contact the Law Offices of Robert Manchel. We have helped clients get out of debt and back on the road to financial recovery. Please call us today at 866-503-5655 to discuss your financial options.