Too many, bankruptcy is a scary situation to find oneself in. A good number of people associate it with being broke, which is not entirely the case. In the U.S., filing bankruptcy is an option that’s made available to virtually everyone, including the non-citizens. But have you ever thought of what impact a criminal record could have on filing for bankruptcy?
It is expected that a conviction record should impact one’s bankruptcy case considering its effects on other matters. For example, a convicted felon can be denied the chance to apply for some jobs.
With the outspread unrest recently experienced in various states, leading to several arrests, it is good to understand how that could affect your chances of filing for bankruptcy. In this post, we look at how a criminal record can impact your bankruptcy case, and also other involvements that may also deter you from getting a debt discharge.
Impact of a criminal record in bankruptcy
First, it is essential to point out that bail bonds are dischargeable in federal bankruptcy court near me. However, fines and court penalties during an arrest or citation cannot be removed in bankruptcy court. It is also prudent to understand that if you are convicted of a crime, there are limitations on the exemptions you get if you file for bankruptcy. The extent of limitations is dramatically dependent on the gravity of the crime you’ve been convicted of.
Crimes that will guarantee you a limitation on the exemptions are those related to finance and fraud. In this case, home exemptions can provide a way to protect your home from creditors. Note that if you are convicted of another crime, not lying withing the fraud or finance field, there are minimal chances of your record having an impact on your bankruptcy exemptions.
However, it is essential to note that the impact that a criminal record has on your bankruptcy case can be quite complex. It is for this reason that you should work with your bankruptcy attorney throughout the entire process.
Businesses that cannot File for bankruptcy
Do you know that not all businesses can file for bankruptcy? Businesses in the U.S. that deal with trading Marijuana are not allowed to file for bankruptcy, even though they are legal operations in some states. The fact that weed is still criminalized nationally, and bankruptcy cases are held in a federal court, makes it impossible for the businesses to seek financial relief. However, this does not mean that it is legal for marijuana traders to file for bankruptcy; they will only be denied a discharge of their debt.
More debts that cannot be discharged by a bankruptcy court
While bankruptcy can help to eliminate several loans, there are those that one cannot be forgiven. They include:
- Student loans
- Court fines and penalties
- Child support obligations
Before you decide to file for bankruptcy, it is vital that you first seek counsel with a bankruptcy attorney near me. This will allow you to understand your case and the implications that filing for the bankruptcy will have.