Bankruptcy Does Not Eliminate All Debts

Many people falsely believe that any and all debts can be forgiven or eliminate using the bankruptcy protection laws. There are in fact, many types of debt that cannot be addressed with bankruptcy.

Alimony and child support cannot be dismissed by bankruptcy. After you file, regardless of which chapter of bankruptcy, these debts will survive. You must continue to pay these debts in full just as if you never filed for bankruptcy.

In addition, debts which you forget to list in your bankruptcy filing are not able to be dismissed. Neither are back taxes, and in most cases student loans. However, there are certain exceptions of extenuating circumstances in which student loans may be dismissed. If you have student loans, there are instances of hardship that could be applicable. Your bankruptcy attorney can explore the possible hardship exemption for a student loan.

There are types of debts may not be discharged if the creditor convinces the judge that they should survive your bankruptcy. These include debts incurred through fraud, such as lying on a credit application or passing off borrowed property as your own to use as collateral for a loan. The bankruptcy codes are complex and no one should attempt to file bankruptcy without the assistance of an experience bankruptcy attorney.

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