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Assessing your debt: Will bankruptcy help?

If your monthly income is not enough to cover all the payments you must make, you may be looking for relief. While an Oregon Chapter 7 bankruptcy is often a solution to overwhelming debt, there are some bills it will not eliminate.

According to the Oregon State Bar, if you applied for or used a credit card that was not your own, and you accumulated debt from that, it cannot be discharged. You may also not include debts that you were ordered to pay because of damages you intentionally caused to another person.

Many people received student loans for an education that does not prepare them for careers that pay enough to cover the debt. There are rare circumstances where you may include student loans in a bankruptcy, but the process is not simple, and most are not able to qualify. It involves a test that proves you are unable to pay the debt because of hardship, even though you have tried, and that you are unlikely to ever be able to pay it in the future.

You may be able to include income taxes in your bankruptcy, but it depends on a number of factors, such as how much time has passed since you incurred the debt, and whether you filed a tax return.

If you have fallen behind in your child support or spousal support, the back pay that you owe cannot be included in your Chapter 7 bankruptcy.

Even if much of your debt cannot be included in your bankruptcy, eliminating other debts may provide you with the extra income in your budget that you need to catch up and maintain these responsibilities. This information about non-dischargeable debts is general in nature. Therefore, it should not take the place of legal advice.

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