Bankruptcy cannot cure every financial problem. Nor is it the right step for every individual. There are four debt problems that usually cannot be completely solved by filing bankruptcy: creditors with liens on your assets, domestic relations obligations, co-signers on accounts and post-bankruptcy debts.

1. Secured Creditors

In bankruptcy, it is usually not possible to eliminate liens that “secured” creditors have on your assets, such as a car or home. A creditor is “secured” if it has taken a mortgage or other lien on property as collateral for a loan. Common examples include car loans and home mortgages. You can force secured creditors to take payments over time in the bankruptcy process and bankruptcy can eliminate your personal obligation to pay any additional money on the debt if you decide to give back the property. But you generally cannot keep secured property unless you continue to pay the debt.

2. Domestic Relations Obligations

A bankruptcy will not discharge some debts singled out by the bankruptcy law for special treatment such as child support, alimony, most student loans, court restitution orders, criminal fines, and most taxes.

3. Co-Signors

Bankruptcy will not protect people who co-sign for your accounts. 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.

4. Debts Incurred After Filing.

Finally, bankruptcy will not discharge debts that arise after bankruptcy has been filed.

We understand the stress and sleepless nights that arise from difficult financial times. Our bankruptcy attorneys are ready to get you some relief and back on the path to good credit. Contact us today for a free initial consultation.