What Obligations Will Not Be Affected by Your Bankruptcy Filing?
One of the most significant benefits of a personal bankruptcy filing is the temporary relief it provides from both the obligation to pay certain debts and from the attempts of creditors to collect on those debts. It’s important to understand, though, that filing a Chapter 7 bankruptcy (which potentially allows you to discharge certain arrearages) does not mean that you no longer have any financial obligations. There are many bills that you must still pay.
What Financial Obligations Must Still Be Honored While You Are in Chapter 7 Bankruptcy?
The types of debt typically unaffected by bankruptcy include:
- Post-petition debt—any obligations incurred after the date you filed your bankruptcy petition. The bankruptcy applies only to prior debts. You can, of course, stop making these payments, but your bankruptcy filing won’t protect you from any collection efforts related to these debts.
- Debts secured by collateral—Technically, you can stop paying these obligations, but the automatic stay won’t prevent a creditor from foreclosing or exercising rights under a lien
The Common Types of Post-Petition Debt that You’ll Need to Pay
Any debt incurred after your bankruptcy filing will be outside of the protection of the automatic stay. Accordingly, creditors may contact you to collect post-petition debt for:
- Child or spousal support (such obligations cannot be discharged under any circumstances)
- Utility payments
- Most tax obligations
- Apartment lease payments
- Homeowners’ fees
- Insurance premiums
The Payment of Secured Debt while in Chapter 7
You can stop making payments on items secured by collateral, such as your home, auto or boat, but you may have to return the collateral. The automatic stay won’t prohibit your creditor from foreclosing on a mortgage or seeking to enforce a lien on other collateral.
Contact an Experienced Rockwall, TX Bankruptcy Attorney
At the Law Offices of Carrie Weir, all potential clients are entitled to a free initial consultation. To arrange an appointment to discuss your rights and options an in bankruptcy, contact my office online or call 972-772-3083. I handle Texas personal bankruptcy filings in Kaufman County, Rockwall County, Collin County, Dallas County, Hunt County and the surrounding counties.
