In most situations, all of your unsecured debt will be cancelled (also known as discharged) in bankruptcy. Unsecured debt consists of credit cards, store cards, medical bills, personal loans not secured by assets, etc... However, certain debts may not be discharged. Typically, these debts include child support, marital obligations, etc...
Spousal Support
Priority The Bankruptcy Code's statutory ranking of unsecured claims that determines the order in which unsecured claims will be paid if there is not enough money to pay all unsecured claims in full. For example, under the Bankruptcy Code's priority scheme, money owed to the case trustee or for prepetition alimony and/or child support must be paid in full before any general unsecured debt (
Mr. Yehl successfully completed the New York Bar Exam in the summer of 2001. After which he worked for a practice in Kingston, New York. There he acquired many skills in bankruptcy, workers’ compensation, personal injury, criminal law, and social security disability. He then moved back to Western New York to focus his energies on bankruptcy, criminal, and social security disability law.
Many people feel a certain degree of shame when considering filing for bankruptcy. Keep in mind that Bankruptcy Law was created with the purpose to help people begin anew. The following is a partial list of some very successful individuals who filed for bankruptcy protection.
Foreclosure
Automatic Stay - An injunction that automatically stops lawsuits,foreclosures,garnishments and all collection activity against the debtor the moment a bankruptcy petition is filed.