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Dayton Bankruptcy Lawyer

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As you can imagine, the economy in the United States has taken a precipitous drop in stability and profitability over the past 2 years. As a result, many hard working people are being driven into financial straits. It seems that every time you turn on the local news channel, all you ever hear about is people's financial woes. Very often these good people are deciding (or it is decided for them) to file for bankruptcy. Since this topic is become so prevalent in our culture, we are going to discuss what Chapter 7 bankruptcy can not help you with.

The first aspect that we will discuss is the fact that Chapter 7 bankruptcy does not discharge all of your debts. You read that right. While bankruptcy will eliminate the majority of your debts, there are two forms of debt that it can not eliminate.

The first form of debt that will not be forgiven is student loans. If you acquire a student loan, you will have to pay it back. This applies to both government sponsored student loans and private lender student loans. If you watch a lot of television, you may have noticed that there seems to be an extraordinary amount of student loans being offered by private lenders. This occurs because the lenders know that regardless of how dire a person's financial situation becomes, the lender will still get paid. Also, there has been a troubling trend of private lenders offering loans at higher interest rates. As a result, we need to do a better job of educating our youth to the pitfalls of student loans (since it continues to entrap many college aged children today).

The second form of debt that will not be forgiven is government taxes. You can be flat broke and the government will still seek the back taxes you owe them. Unfortunately, even with filing for bankruptcy, you are still obligated to pay your taxes.

As a side note, one of the interesting things about the Chapter 7 bankruptcy process is the particular order in which creditors get paid. One of the first creditors to get paid is the courts, the government (your back taxes), and your lawyer. The majority of your daily creditors (the credit card companies, the mortgage company, etc.) are down towards the end of the list. Therefore, if you are going to file for Chapter 7 bankruptcy, you should (in an ideal situation) have enough assets that can be sold to pay your taxes and student loans.

Since the bankruptcy laws now mandate that you use a Dayton bankruptcy attorney (if you live in Dayton, Ohio) to file bankruptcy, we highly recommend your seek out a competent, experienced Dayton lawyer.