4 Things That Chapter 7 Bankruptcy Won'T Do

Posted on: 4 January 2016

If you're in a financial bind, you may think filing for Chapter 7 bankruptcy will get rid of all your problems. However, this is simply not the case. There are many debts that bankruptcy can get rid of, but there are several ones that won't be affected by it. It's ideal to know what debts won't be discharged when you do find out you're eligible for this status.

Eliminate student loans

When it comes to money you've borrowed to help pay for your education, this will typically have to be repaid regardless of if you qualify for bankruptcy or not. However, if you can prove that you've endured a "unique hardship", you may be able to avoid repaying this loan. Keep in mind that it's extremely difficult to qualify for this status when it comes to getting rid of student loans.

Child support and alimony

If the court orders you to pay a certain amount of money for child support or spousal support, you must pay this. You will be unable to have these discharged if you do qualify for bankruptcy because these were court ordered.

However, it may be possible to have the amounts you must pay reduced, but this will be left up to the court, and you will need to make an appeal.

Tax debts

If you owe money to the Internal Revenue Service (IRS) for past taxes, you will have to pay this. However, you can set up a payment plan with the IRS that will allow you more time in getting your taxes paid.

Miscellaneous Debts

There are other debts that won't be discharged from your bankruptcy, and these are listed below:

1. Debts that you forgot to record when you filed for the bankruptcy. It's important to make a list of all the money you owe to creditors to ensure you don't forget any of these.

2. If you were the cause of another person's fatality because of being intoxicated, any fees that you must pay due to this injury would not be discharged.

3. Being charged for criminal activity or getting a traffic ticket.

It's ideal to know what debts won't be discharged before going to the trouble of filing bankruptcy if you're trying to get rid of these. Taking the time to discuss your individual financial situation with a bankruptcy attorney like Flippin Thomas C will allow you to know the full details that are involved when it comes to this legal status.


Figuring Out My Finances

For years, I lived on the edge of a paycheck. I was always running out of money, wondering when I would be paid next, and hoping for extra bonuses. Unfortunately, one day my luck ran out, and I found myself without a way to pay my rent. My landlord wasn't patient with me, and I actually got kicked out of my place. It was devastating and embarrassing, but I knew that there had to be a way to repair my finances. I met with a bankruptcy attorney to talk with me about my debts, and she was incredibly helpful. After seven years, I was able to completely correct my credit, and it has changed my life. Check out this blog to learn more about bankruptcy.

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