Even Lawyers Need Lawyers
He probably should have consulted with an experienced bankruptcy lawyer. First, Michigan business lawyer David W. Charron was hit with a big fine for violating a judge’s order. Then, Charron filed for bankruptcy protection to avoid paying the fine. He should have known that monies owed to the courts – whether criminal or civil fines, contempt fines, or child support and alimony payments – are not covered by and cannot be discharged through filing for personal bankruptcy. If your debts are spiraling out of control in the Chicago area, learn what debts you can discharge in a bankruptcy and what debts you will still have to pay in full. Have a discussion as soon as possible with an experienced Chicago bankruptcy lawyer.
Unsecured debts – medical bills, credit cards, automobile repossessions, and foreclosure judgments – can be erased or discharged by a Chapter 7 bankruptcy, but debts related to legal actions – child support, alimony, taxes, and civil or criminal fines – cannot be erased or discharged by bankruptcy. Mr. Charron was found in contempt of court subsequent to orchestrating the sale of an insurance company after a court ordered him not to. The contempt fine amounted to $363,506.77. Mr. Charron filed for bankruptcy on December 31, 2014. It’s not Mr. Charron’s first contempt of court. He was fined $1,000 last year for insulting a Circuit Court judge in Michigan’s Kent County.
A Chapter 7 bankruptcy may remain on your credit record for ten years. A Chapter 13 bankruptcy is typically removed after seven years. Surprisingly, bankruptcy combined with a change in your spending habits can actually improve your credit score over time, but bankruptcy rarely erases all of a person’s debts. If you are struggling with mounting debts in the Chicago area, if you need to file quickly for bankruptcy, or if you’d like to learn more and also discuss alternatives to bankruptcy, arrange as quickly as possible to consult with an experienced Chicago bankruptcy lawyer.
