Which debts can I get rid of in bankruptcy?
January 6, 2022 | 40,00 EUR | answered by Katja Winterberg
Dear bankruptcy attorney,
I hope you can help me with my problem. My name is Ralf Tiefbach and I am currently in a very difficult financial situation. Due to unemployment and health problems, I have accumulated high debts that I simply cannot afford to pay back. I have already tried to negotiate with my creditors, but unfortunately without success. Now I am considering whether bankruptcy would be an option for me.
I have heard that through bankruptcy, certain debts can be discharged, but I am unsure which ones exactly. My biggest debts are with my bank, but I also have outstanding bills with various mail-order companies and a debt collection agency. Is there a way for me to get rid of these debts through bankruptcy? Or are there certain debts that will still remain after bankruptcy?
I am very concerned about my financial future and would like to know what options are available to me to get out of this stressful situation. Are there alternatives to bankruptcy that I should consider? Or is bankruptcy the best solution in my case to get rid of my debts and start fresh?
I would greatly appreciate it if you could help me with these questions and provide possible solutions. Thank you in advance for your assistance.
Sincerely,
Ralf Tiefbach
Dear Mr. Tiefbach,
Thank you for your message and for trusting in my expertise in the field of insolvency law. I am sorry to hear that you are in a financially difficult situation. I am happy to assist you and will answer your questions as thoroughly as possible.
First and foremost, it is important to know that bankruptcy is indeed a possibility to get rid of certain debts. Within a bankruptcy process, liabilities such as loans, outstanding bills from mail order companies, or claims from debt collection agencies can be forgiven. This usually happens within a bankruptcy plan or through a so-called discharge of debts procedure.
However, there are also certain debts that may remain even after bankruptcy. These include, for example, alimony debts, fines, or compensation claims from intentionally committed offenses. It is therefore advisable to inform yourself in advance about the nature of the debts to ensure that they can be forgiven within a bankruptcy process.
In your case, with high debts at the bank, outstanding bills from mail order companies, and a debt collection agency, bankruptcy could indeed be an option. It is important that you consult with an experienced insolvency attorney early on to discuss your individual situation and work together to find the best solutions.
Alternatively to bankruptcy, there are other ways to reduce debts, such as an out-of-court debt settlement or a debt compromise. However, these options should always be evaluated on a case-by-case basis and depend on various factors.
I strongly recommend that you seek personal advice from an insolvency attorney to analyze your situation in detail and find the most suitable solution for you. Together, we can find ways to help you out of this burdensome situation and enable a fresh start.
I hope my response has brought some clarity and I am available for further questions.
Best regards,
Katja Winterberg
