Northstar Legal Group Bankruptcy Law
What Is Bankruptcy?
Filing for Bankruptcy
Bankruptcy protection can be especially helpful for people who are at risk of losing their homes or who have unpaid debts that they can no longer pay. It can also help small businesses or individuals who have suffered medical emergencies, divorce or other major life changes that have contributed to financial instability.
While many people believe that bankruptcy can cost you your home and other personal belongings, the truth is that both state and federal exemptions exist to protect some of your property and ensure that you can enjoy a fresh financial start without the debt burdens of the past.
Once your debts have been discharged, you can begin rebuilding your credit right away.
Which Debts Can Be Discharged?
Many consumer debts can be discharged in bankruptcy, including:
- Credit card debts
- Personal loans
- Promissory notes
- Medical debts
- Lawsuit judgments
Some debts cannot be discharged through bankruptcy, including:
- Tax debts
- Child or spousal support
- Some types of legal fees and penalties
Other debts may or may not be discharged, including court fees, student loans, HOA fees and debts that weren’t discharged by a previous bankruptcy petition.