There may come a time when one doesn’t have sufficient money to pay off their debt. When this happens, the debtor may seek bankruptcy as a solution. Bankruptcy is a legal process where people who can’t pay off their debt seek relief from some or all of the debt. Credit card and medical bills are dischargeable, as well as personal loans from family and friends. Although filing for bankruptcy can provide some relief, not all debt is excused. Bills continue to come after it’s been filed, and some of those still need to be paid. Living expenses, such as rent, utilities, cell phone plans, and car insurance still need to be paid. Student loans, tax debts, personal injury debts, court fines or penalties, and child support are also unexcused. Southwest Recovery Services will collect these debts through consistent and effective communication and management efforts.
Living Expenses Must be Paid Even After Bankruptcy
If a debtor continues to live in the same place and use their cell phone plan, they must continue to pay for it. If they have a past-due balance when filing for bankruptcy, they may be excused from paying those bills. However, if they don’t cancel the service and want to continue living their normal life, they will be charged normally too. In some cases, utility companies may require proof of the debtor’s ability to pay going forward if they want to continue service with these companies.
Car Payment and Insurance Debt Unexcused
If the debtor wants to keep their car after filing for bankruptcy, they must continue making payments. There is no relief provided unless they are willing to give up their car. Bankruptcy can wipe out the car loan; however, there must be an arrangement to pay moving forward. A car loan lender can repossess the car since it is offered as collateral if the payments aren’t met. Therefore, the only way to keep the car is to pay for it.
Student Loans, Tax Debts, Personal Injury Debts, Court Fines, and Child Support
These debts are nondischargeable. If bankruptcy is filed, a payment break may be granted. However, when the bankruptcy case is closed, the debtor is still required to pay. Certain unpaid taxes, such as tax liens must be paid back. Personal injury debt is incurred through an event such as a drunk-driving accident. Willful and malicious injury to another person is another debt that is unexcused. Domestic support obligations must be met. There is no breathing room here.
Debt Recovery Solutions After A Debtor Files For Bankruptcy
The debt recovery agents at SWR will exhaust all methods of debt collection, and continue to pursue outstanding balances where it’s legally applicable. Although bankruptcy can provide relief, not all debt vanishes. Southwest Recovery Services is here to facilitate the process. Our professional agents are up-to-date with the best debt collecting practices. We will use any strategy available to us to collect. If necessary, we will seek legal action to recover bad debt. Give us a call today to have your debt collection completely managed by us.