Below Chapter seven bankruptcy, the trustee will liquidate your non-exempt belongings and distribute the proceeds for your creditors. In Chapter 13 filings, the trustee also oversees the debtor's repayment approach, receives payments in the debtor and disburses the money to creditors.

It is really challenging—but not unachievable—to discharge some older debts for unpaid cash flow taxes (see our write-up on eliminating tax debts in bankruptcy). One of many important points of interest of bankruptcy is usually that it stops most assortment makes an attempt.