Many people think that once discharge is granted by the Bankruptcy Court, the debtors are released from the liability of paying all debts. Think again! Not all your debts can be discharged in bankruptcy. Super Saving Tips lists several types of debts you can’t kick out in bankruptcy.
- Debts you owe the government: “Have you been penalized or fined by the government? If so, I’m afraid bankruptcy can’t give you any relief. No one can give you any relief. You have to pay the fines and penalties or they will stay with you till your last breath. If you have more questions regarding government debt and how it will be treated in bankruptcy, then consult an attorney.”
- Child support and alimony: “Child support payments and alimony aren’t dischargeable in bankruptcy. These two basically comprise the amount your child or ex-spouse needs for covering basic living expenses. Debts you owe due to marital property division don’t come under this kind of support. In a few states, these debts are dischargeable in bankruptcy.”
- Student loans: “Millions of students and parents would have given a sigh of relief if student loan debts could be eliminated through bankruptcy. Unfortunately, in most cases, they can’t be discharged in bankruptcy proceedings. Private student loans, federal student loans, loans taken out from a school or university all can’t be kicked out by filing bankruptcy.”
- Income tax: “Most people think about bankruptcy to discharge unpaid income tax. It isn’t impossible to discharge income tax in bankruptcy.”