Bankruptcy Debts That May Not Be Discharged
Are you hoping that bankruptcy will wipe away all of your past debts? That is not always the case. Here are some debts you could still be stuck with, even after a bankruptcy is finalized.
Do you currently owe child support from a previous marriage? This debt won't just go away with a bankruptcy. In fact, this is a court-imposed financial responsibility, and you will still be obligated to pay all missed payments. Missing child support payments has legal consequences, so make sure you stay on top of making them.
Not all tax debts will be automatically discharged with a bankruptcy. More specifically, payroll and property taxes will still be owed afterward. Federal taxes are a bit different, since those could be discharged if certain conditions are met. If you've filed your tax return, have not committed any form of tax fraud, and only owe taxes based on your income, you may be able to have those taxes discharged.
Denied Previous Bankruptcy Debts
If you have previously filed for bankruptcy and did not have it approved by the courts, those debts in that filing may not be eligible to be dismissed. This can happen if you were found to misrepresent your debts on your prior bankruptcy filings, or they are dismissed due to fraud. Work with a lawyer if you feel a filing was wrongfully rejected, since you will need to appeal the case and have it overturned.
There are rules to prevent people from repeatedly filing for bankruptcy to get the same debts discharged. The automatic stay laws prevent creditors from asking you for money during a bankruptcy proceeding, so without the laws in place you could extend this process indefinitely.
Any loans taken out for your personal education will most likely need to be paid back in full. This type of debt is not allowed to be discharged in a bankruptcy filing. However, there are exceptions to this rule that a lawyer can help you with.
Situations such as being in poverty or experiencing hardship can be a reason to dismiss a student loan. The judge will ultimately be able to make this determination for you, so work with them to get the results that you desire.
These are only a few debts that you may be stuck with after a bankruptcy. Your lawyer can let you know of any potential problems with debts before you file chapter 7 bankruptcy or another type of bankruptcy.