Are you planning to file for bankruptcy to get rid of your debts? If so, know that there are some debts that you may be stuck with after bankruptcy. That's become there are debts that cannot be discharged, and you will still have to pay after the bankruptcy is finalized. Here are some examples of those unique debts to be aware of.
Property Without Giving It Up
Do you have property that you are looking to keep after the bankruptcy is over? This includes the mortgage on a home or the loan to a vehicle. Know that these debts cannot be discharged if you plan on keeping the property. If you decide that you want to give up the property, then the discharge will be allowed. Unfortunately, many people need their home and their car without there being other options.
Child Support and Alimony
Any child support payments that you owe are still going to be valid debts after bankruptcy. These are not technically debts, but court-ordered payments that you need to make on behalf of a child that you had with your former spouse. It doesn't matter how much you owe in child support, since that will still be something that you have to pay. However, that child support payment will count towards your monthly expenses during a Chapter 13 bankruptcy.
The same can be said for alimony payments, which are very similar to child support. The same reasoning for child support will also apply to alimony.
Your student loan debt is something that cannot be discharged in most situations. There are some rare exceptions though, but it involves proving that you have an undue hardship that would make it impossible to pay it back. For example, if you suffer from a disability that does not allow you to work, then you simply wouldn't be able to pay the loan back and may be able to qualify.
Court Ordered Fines
Do you have fines that you need to pay from a court case? This could be a judgment that was ruled against you in court, or even unpaid parking tickets. These are debts that also cannot be discharged because they are ordered by the court.
Income Tax Debts
If you have not been paying your income taxes, those debts will need to be paid off eventually since they cannot be discharged. In fact, many types of taxes cannot be discharged, but there may be limitations as to how many recent years of back taxes cannot be discharged.
Reach out to a law service, such as Harold S. Entes Esq., to find out more.Share