The Aftermath of a Chapter 7 Bankruptcy Filing: 3 Questions to Ask
Once you decide that Chapter 7 bankruptcy is the best option, it is time to determine if you are eligible to file. If the answer is “yes,” it may not be long before you move forward with the process.
Many people get so caught up in the details of filing for Chapter 7 that they overlook what will happen down the road.
Generally speaking, what happens after Chapter 7 is based largely on the debt that is discharged.
Here are three questions that most people ask at this point in the process:
- Can student loans ever be discharged in Chapter 7? You may be disappointed to learn that this debt was not wiped clean. While there are times when student loans are discharged, it is few and far between. This is not something you should expect, so make sure you plan on making your payments as scheduled in the future.
- Will the IRS pay more attention to me now that I filed for bankruptcy? This is a common myth. The IRS does not focus more closely on those who file bankruptcy. Remember, you are not the only person who filed. With more than one million people doing so every year, it would be impossible for the IRS to target each and every individual.
- What happens if my ex-spouse, somebody who pays child support, files for Chapter 7? This may not be a question you ask after you file, but instead a result of another person’s action. Child support is known as a priority debt, meaning that filing for bankruptcy does not allow a person to stop making payments.
On the same note, if you owe child support, filing for bankruptcy doesn’t mean you can forget about this.
Before filing for Chapter 7 bankruptcy it is essential to become familiar with the process as a whole, including what will happen in the future. The questions above, among others, are well worth answering.