ARIZONA BANKRUPTCY: FILING BANKRUPTCY CAN NOT SOLVE ALL FINANCIAL PROBLEMS
Bankruptcy can be a lifesaver for the honest but unfortunate debtor. However, it doesn’t solve all financial problems or wipe out all debts. For instance, Bankruptcy can’t solve a current financial squeeze when your current income does not cover your normal current bills (rent, utilities, food, gas, car payments, etc...). Consult a local Tucson bankruptcy law firm for more information.
Also, Bankruptcy doesn’t discharge debts after the filing date. Bankruptcy can only clear the slate with old debts – like credit card balances, previous apartment rental debts, old utility bills, and previous repossessions, etc…. Bankruptcy filing only discharges debts before filing, not new debts. For example, if you or a family member is currently recovering from an accident or disease with significant medical bills, a bankruptcy can only discharge the medical bills to the date of filing, not any future medical bills after filing.
Bankruptcy also does not discharge: Taxes; Student Loans; Child/Family Support; Court Fines, Fees, and Restitution; Drunk Driving Accident Claims; Fraudulent Debts or Fiduciary Obligations; and Business debts involving wages and employee benefits; and New Debts within 90 days of the filing date (see Chapter 13 bankruptcy in Tucson). These debts are considered a priority, and Bankruptcy does not affect them.  However, a Chapter 13 Bankruptcy can help you avoid the normal collection harassment by setting up a 3 to 5 year repayment plan for many of these debts.
February 2nd, 2010 - 18:15
A bit more information for your readers.
I am a board certified bankruptcy attorney in Ohio. I agree with what is said, and would add that proper timing is critical in some cases. So, if your family is going through a medical issue, make sure that all the bills are in before filing. And while it is true that some debts are not discharged, normally the discharge of most of a person’s debt is sufficient to make it possible to pay the non-discharged debts. Bankruptcy can also help save a home when a temporary setback, medical or layoff, causes one to get behind and need time to catch up. For more information, see my website at http://www.debtfreeohio.com.