(Black Enterprise) — We’ve all seen and heard them: the TV ads and the radio commercial promises touting bankruptcy as a “fresh start” to help you get rid of overwhelming bills. While it’s true that Chapter 7 bankruptcy can wipe out many consumer debts, such as credit card payments and medical bills, it’s also the case that a lot of different types of debts don’t get eliminated in bankruptcy court. Additionally, Chapter 13 bankruptcy—which consumer advocates say many African-Americans have been steered into recently—isn’t designed to allow you to completely walk away from your debts, but rather to reorganize your finances and pay off debt over a period of three to five years. So before you take the step of filing for bankruptcy protection as a cure-all, it’s important to be aware of the various financial obligations you will still have to handle even after you go through the process of bankruptcy.
