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Know which debts can be discharged in Michigan bankruptcy

When Michigan residents need instant debt relief, many may consider seeking bankruptcy protection. It's important to remember, however, that not all debts are dischargeable through the bankruptcy process. For most people, discharging student loan debt is not an option. And for others, like Casey Anthony, getting rid of a tax debt owed to the Internal Revenue Service may also not be possible.

Most people remember Anthony for her sensational trial and acquittal on charges of killing her 2-year-old daughter in 2011. Media outlets were glued to the months-long trial that captured the nation's attention. Anthony recently filed for Chapter 7 bankruptcy in an attempt to erase much of her debts stemming from her legal troubles.

According to her bankruptcy petition, which was filed in U.S. Bankruptcy Court in her home state, Anthony has $792,000 in debts with just $1,100 in assets and no income coming in.

Her largest debt is approximately $500,000, which she owes to her criminal defense attorney. She also owes $145,660 to the local country sheriff's office for investigative costs and $61,505 in court costs. She also owes the Internal Revenue Service $68,540 for unpaid taxes. It's unknown how long the taxes have been due, but taxes due to the federal government within the last three years are not dischargeable in bankruptcy. Some of the legal judgments, like the court costs and investigative fees, however, may be dischargeable.

It's important to know what debts you can and can't get rid of before filing for bankruptcy. An experienced bankruptcy attorney will be able to answer many of your questions and find out if filing is the right option. For some people, negotiating with creditors to consolidate debts may be a better option.

Source: USA Today, "Casey Anthony files for bankruptcy in Fla.," Jan. 27, 2013

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    Posted by MaryDecember 11, 2015

    "I am overwhelmed by your response to my call, even 10 years after my bankruptcy was discharged. You have more knowledge and expertise than I could have imagined. Because of you, my fears have been put to rest. For that, I'm so very grateful. Thank you many times over. "

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    "... I was extremely impressed with Charles' understanding of the bankruptcy laws to the extent that I felt certain that my best interests were always at the forefront. "

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    He helped me thru my 1st bankruptcy and now the second. I had no idea what to expect , but they kept me informed and answered all my questions. Mr. Schneider is the most experienced and knowledgeable lawyer I have ever met. If you have to file call this attorney first!

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