A Look At Debts Usually Not Discharged During Bankruptcy

Carrying around a load of debt that you cannot pay back is an overwhelming feeling, and bankruptcy is one way out. However helpful bankruptcy may be for typical debts, such as mortgage loans you can't pay and car payments you can't afford, bankruptcy cannot always discharge every type of debt. There are actually some debts that you will remain responsible for no matter what type of bankruptcy you file. Here is a look at some of the debts that are not normally discharged during bankruptcy. 

Child Support, Alimony, or Other Family Support 

If you are facing bankruptcy, it won't matter what kind of financial situation you are in, you will still have to pay the monies owed for any type of family support that a judge has required you to pay. For example, if you are going to be filing bankruptcy because you got a divorce, lost your job, and can no longer afford to pay the debts you have, you will still have to pay any family support payments you owe because they will not be discharged or considered during the bankruptcy proceedings. 

Student Loans 

Student loans can come along with high interest and large payments, and they do sometimes create their own financial burden. Unfortunately, student loans are not allowed as considerable dischargeable debts in most cases. The federal government restricts filing bankruptcy on these loans, so you will have to continue to make payments. There are a few exceptions to this rule, but the scenarios and approval for inclusion in bankruptcy are incredibly rare. For instance, if an individual is facing financial hardship because of the loans and there is a disability present that would prevent them from ever being able to pay them back, exceptions could potentially be made. 

Debts Owed Due to Breaking the Law or a Judgment Against You 

If you owe money to someone because you broke the law, these debts will not be able to be added as part of your bankruptcy. There are several situations where this may apply: 

  • You owe restitution for damaging someone's property
  • You have fines owed to the court system for breaking a law
  • You have been sued for damages and are required to pay a settlement

These rulings are made in a court of law, so they exist outside of and prior to any ruling made by the bankruptcy court, so they cannot be included in your discharged debts. 

Contact a bankruptcy law attorney for advice on how to file bankruptcy.

About Me

what my bankruptcy lawyer taught me

I took the leap and left the company that I had worked with for nearly fifteen years and opened a business of my own. Things went very well for the first few years, but when my health started going south, it became difficult for me to keep up with the workload. Eventually, I had to close my business and was left with no income and a whole pile of bills that I couldn't pay. After months of dealing with debt collectors calling my home every single day, I decided to talk with a bankruptcy attorney to find some help. Find out what he taught me right here on my blog.