Secured debt should be your top priority when paying bills if your money gets tight. If you fail to pay your secured debt, you could lose your property, such as your home or vehicle. Also important is to pay your student loans, back taxes, alimony, or child support. You won’t lose your house or your car not paying these, but you may find yourself in jail. Bankruptcy can help you get back on track to pay your priority debt.
Government Actions to get Payment
The government wants their money and will take action against you to collect payment. Penalties and fines are often added on to the late taxes or student loans, plus you might not be able to renew your licenses. The government can also garnish your wages and put a lien on your home. The IRS can seize your property and force the sale to pay back your taxes. The government can also take part of your federal wages or benefits like your Social Security payments.
While you may not be able to eliminate your tax debt or student loan, and you will not be able to eliminate your alimony or child support without petitioning the court to do so. If you have overwhelming debt, you can wipe away all other qualifying debt and have more money to make your priority payments by filing for bankruptcy.
Chapter 7 bankruptcy can be completed in three to six months. With this type of bankruptcy, all of your qualifying debt is eliminated, and you will not have to make payments. Chapter 13 bankruptcy requires you to make back payments from an approved plan of three to five years, allowing you to catch up on your priority debt.
If you are behind in taxes, student loans, alimony or child support contact a Columbus bankruptcy attorney to find out if you can get some financial relief.