Does Bankruptcy Clear All Debt?

So, you’ve decided to file for bankruptcy! Bankruptcy might be the answer to your financial problems, but are you sure it’s what you want?  

The court system can be a difficult one, and sometimes people feel like they’re just going through the motions of filing for bankruptcy without realizing the possible benefits they could get out of it. However, filing for bankruptcy does not automatically mean a clean slate. Bankruptcy doesn’t mean that all your debt will be cleared. A Montgomery bankruptcy lawyer can help you analyze your situation and see if bankruptcy is the right decision for you. In fact, a lawyer can help you get the most out of your bankruptcy.

Common Forms of Debt That Don’t Get Discharged During Bankruptcy

Not all kinds or forms of debt are discharged in bankruptcy. Some forms of debt that rarely get discharged in bankruptcy include:

  • Alimony or child support

Bankruptcy will not wipe away child support or alimony obligations. If you don’t have the ability to pay and you’re behind on your monthly payments, it doesn’t mean that you can opt out of these debts. So, if your divorce decree states that you have to pay or that your ex-spouse has a right to be paid, then you cannot opt out of this debt during bankruptcy lifestylefun.

  • Student loans

Student loans are not as easy to discharge as other kinds of debt. In fact, these loans are another form of debt that does not get discharged in bankruptcy, unless it’s determined for undue hardship by the court system.

  • Income taxes

Most people will agree that income taxes are one of the most painful debts to pay. Income taxes can’t be discharged in bankruptcy. So, they will still be due even if you go through with a Chapter 7 bankruptcy or a Chapter 13 bankruptcy.

  • Sources not listed in a bankruptcy filing

Your lawyer will be able to explain whether or not your other debts are discharged in bankruptcy. So, if you have credit card debt, medical bills, or additional debts that are not listed on your Chapter 7 bankruptcy filing, don’t feel like you’re doomed to them. A good bankruptcy lawyer can help you get the best out of your situation with these other debts by explaining what’s the best course of action partyguise.

  • Death or injury caused by drunk or impaired driving

If you’ve been charged with a DUI and injured someone else, your debt will not be eliminated. However, there might be an alternative to filing for bankruptcy. A good bankruptcy lawyer will advise you on the best next step to take in your biographycon.

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