What Wisconsin Filers Should Know About Non-Dischargeable Debts
Wisconsin filers facing financial difficulties often find themselves exploring options such as bankruptcy. However, it’s crucial to understand the concept of non-dischargeable debts, as not all debts can be eliminated through bankruptcy proceedings. Understanding these debts is essential for anyone considering filing for bankruptcy in Wisconsin.
Non-dischargeable debts refer to specific types of debts that remain after the bankruptcy process is complete. In both Chapter 7 and Chapter 13 bankruptcies, certain debts cannot be wiped out. This means that filers are still responsible for repaying these debts even after they go through bankruptcy.
Some common examples of non-dischargeable debts include:
- Student Loans: Most student loan debts are non-dischargeable unless the borrower can prove undue hardship under strict criteria, which can be challenging to establish.
- Taxes: Certain tax obligations, particularly those related to income tax that are less than three years old, are generally non-dischargeable. Some taxes also come with specific conditions and deadlines that must be met.
- Child Support and Alimony: Obligations to pay child support and alimony are not dischargeable in bankruptcy. Courts expect these payments to be fulfilled, regardless of the bankruptcy status.
- Debts for Personal Injury Claims: If a debtor caused injury to another party as a result of intentional actions, debts from personal injury judgments are non-dischargeable.
- Recent Credit Purchases of Luxury Goods: Any debt incurred for luxury items within the 90 days prior to filing is typically considered non-dischargeable.
For Wisconsin filers, it is vital to assess which debts are non-dischargeable and plan accordingly. Knowing what will remain after bankruptcy can significantly impact the financial recovery strategy.
Furthermore, before filing, individuals should consider consulting with a qualified bankruptcy attorney. An attorney can provide valuable insights into the complexities of bankruptcy law and help filers navigate their options effectively. They can also assist in identifying non-dischargeable debts and planning for repayments post-bankruptcy.
Lastly, it’s essential for consumers to keep accurate records and documentation of their debts. This can aid in the bankruptcy process and in understanding which debts will remain after filing. Staying organized will also enable filers to strategize effectively for a healthier financial future.
In summary, Wisconsin filers should be well-informed about non-dischargeable debts when considering bankruptcy. By understanding these debts, consulting with professionals, and keeping thorough records, individuals can better navigate their financial challenges and work towards a fresh start.