It seems as though debt sneaks up on Texas residents. Their lives are busy, and even though it may take months for the situation to become dire, many wake up one morning to realize they are overwhelmed by their financial situations. One of the debt relief options they may pursue is the filing of a Chapter 13 bankruptcy.
Before embarking on the journey, it may be a good idea to understand that not all debts can be discharged through this or any other chapter of the Bankruptcy Code. Even so, that does not mean that it will not achieve a Texas resident's goals regarding obtaining a fresh financial start. For instance, an individual still owes alimony and child support despite bankruptcy, including back payments.
Other debts include most taxes and student loans. If an individual intends to keep his or her home, the mortgage loan also remains a financial obligation post-bankruptcy since it will more than likely not be paid off during the repayment plan period of three to five years. Financial obligations incurred through criminal convictions or drunk driving also cannot be discharged. Some research may be required in order to determine what other debts a particular person has that will survive the bankruptcy.
Many people are under the impression that all of their debts go away in a Chapter 13 bankruptcy, but that is often not the case. It would be a disappointing experience to go into the process with that misconception. Instead, it could prove beneficial to sit down with a bankruptcy attorney to gain an understanding of what debts cannot be discharged, along with whether this avenue toward debt relief would be the best one under the circumstances.