Are All Debts Discharged After a Bankruptcy?

When faced with crushing debt and no light at the end of the financial crisis tunnel, many folks turn to bankruptcy in order to protect themselves from over-zealous creditors, collection agencies, and the possibility of being sued. While many types of debt can be discharged during a bankruptcy, the slate may not be totally wiped clean when it comes to debt.

There are certain types of tax debt that cannot be discharged during a bankruptcy. In spite of the fact a tax debt may feel beyond your means to repay, bankruptcy may not erase that debt. Another required payment that cannot be discharged is child or spousal support. When you have been determined as legally obliged to make these payments, a bankruptcy cannot remove that obligation. Student loan debt can add a serious amount of stress to a financial predicament, but in many cases that debt cannot be discharged through a bankruptcy.

Another area which can provide severe difficulty during a personal financial crisis is any type of debt that a person has sustained as the result of damages they have been ordered to pay, resulting from an injury they were judged to have caused. If a judgment was reached against you, and damages were awarded to another party as a direct result of your actions, that debt cannot be discharged through a bankruptcy proceeding.

While many of the previous reasons why a debt may not be discharged sound solid, there can be other factors which require consideration before a determination can be rightfully reached regarding a particular type of debt. These types of debt can be quite complicated and require the skills of a highly experienced bankruptcy attorney. If you are contemplating bankruptcy and wondering if you have a debt that you may not be able to have discharged, give us a call at Behm Law Group and we can help you sort through you options and provide the best results obtainable regarding your case.