Before you file for bankruptcy, it is important to understand what it can and cannot do for your debt situation. There are some debts that are covered in a bankruptcy as well as some that cannot be included. These are some of the types of debts you can include:
- Unsecured debts: Unsecured debt would include credit card debt unless you have a secured card. Credit card debt is the most common type of unsecured debt, but there may also be other kinds.
- Medical bills: If you are unable to pay your medical bills, you can include these debts in your bankruptcy filings.
- Utility bills: In this case, you can only include past due amounts.
- Personal loans: Personal loans that qualify include those from friends, family, and even from your employer.
- Collection agency bills: Not only can you include these debts in your filing, but as soon as you file, an automatic stay will be initiated so they cannot contact you for payment.
- Past due rent: If you are being sued or owe money under your lease agreement or a previous one, you can include those amounts in your bankruptcy.
These are some of the types of debts that cannot be included:
- Tax debts
- Student loans
- Child support and alimony