5 Debts That Remain After Bankruptcy Discharge
If you are interested in pursuing bankruptcy to absolve you of your debts, one important thing to keep in mind is which debts you will likely still see after a bankruptcy discharge. It’s important to go into this type of process with complete knowledge, so keep these in mind when deciding if this route is a good fit for you.
1) Student Loans.
There are very few exceptions to this rule, but unless you can prove to the court that you cannot pay down your student debts now or in the future, you will likely continue this burden after bankruptcy.
2) Debts accrued after filing for bankruptcy.
Any debts you accumulate after you file will not be discharged. They basically remain your responsibility to pay. Also included are any debts you did not report at all. This is due to the fact that if you didn’t report these debts than the court will have no way of notifying these creditors of your wish to discharge the debts. Filing bankruptcy and reporting specific debts gives creditors a chance to file a claim, if necessary.
3) Child and spousal support.
There are exceptions to this rule of course but most debts accrued within family law will not be discharged within bankruptcy. Other types of debts from family law can also be alimony, attorney fees, and debts from separation agreements. There are definitely things to consider on a case by case basis, so keep that in mind.
You know the old saying? Nothing is permanent except for death and taxes. Well tax debt doesn’t go away after bankruptcy either. For example payroll taxes or penalties for fraud do not get discharged. However there is an exception to this rule. For example, if you are looking to discharge income taxes and you filed a legitimate tax return you could be eligible to discharge these debts. Be sure to speak with your lawyer about this matter directly.
5) Debts related to a criminal sentence.
Any debts following a criminal sentence such as restitution that you are asked to pay will not go away after bankruptcy discharge. This also includes any fines and fees related as well.