Law Offices of Robert M. Kaplan, P.C.

What Doesn’t Bankruptcy Do?

The bankruptcy process does not:  

  • Eliminate the rights of “secured” creditors who have a mortgage or lien on property as collateral for the loan. Common examples are home mortgages and car loans.  You can force secured creditors to take payments over time in the bankruptcy process and bankruptcy can eliminate your obligation to pay any additional money if your property is taken. However, you generally cannot keep the collateral unless you continue to pay the debt.

  • Discharge types of debts singled out by the bankruptcy law for special treatment, such as child support, alimony, certain other debts related to divorce, some student loans, court restitution orders, criminal fines, and some taxes.

  • Discharge debts that arise after bankruptcy has been filed. 

  • Protect cosigners on your debts. A bankruptcy discharge does not protect the relative or friend who has co-signed a loan.