Because Chapter 7 bankruptcy is known as a liquidation bankruptcy, there are those who think that every single debt you have can be included and taken care of. This is simply not true. However, bankruptcy is still a solid choice for those who qualify. While you may not be able to walk away from all of your debt, you can certainly make it a bit easier to pay off the accounts that remain and get a fresh start on rebuilding your credit score. Read more about Chapter 7 here (http://www.zerodownbankruptcy.com/bankruptcy-lawyer-st-petersburg-florida/Chapter-7/).
Child Support and Alimony
Neither child support nor alimony can be discharged under a bankruptcy. Neither can the lawyer fees for child support cases or child custody cases. However, when the other debts you have are discharged, it can make it much easier to make child support and alimony payments—and even catch up on late payments toward those accounts. For more information on child support and bankruptcy, click here (http://www.zerodownbankruptcy.com/bankruptcy-news/debt/can-i-include-my-child-support-debt-in-bankruptcy/).
In many cases, student loans cannot be discharged under bankruptcy laws. However, an experienced bankruptcy lawyer who has dealt with student loans in bankruptcy court can file an adversary proceeding if student loans present too much of a financial burden.
Again, even if the student loans are not dismissed or discharged, the removal of other old debt makes it more viable for you to catch up on your student loans. Once you do this and are no longer in default, you may be able to apply for an income-based payment plan that will limit how much you spend on student loans each month.
Government-Imposed Fees and Fines
Generally speaking, if the government has imposed a fee or fine, you will not be able to discharge that particular account. If you have been sued for an account, this may be discharged as long as it meets bankruptcy law standards. However, that only applies to things like civil suits. It does not apply to anything related to a criminal charge, such as some of the items listed below:
- Judgments awarded that found you must make payments to an injured party to cover the cost of personal injuries that occurred in an accident in which you received a conviction for driving while under the influence. In other words, if you hurt someone while you were drinking and driving and were later sued and lost the case, you still have to pay that amount.
- Fees related to a homeowners association or condominium association
- Fines or fees owed to a government body based on a criminal conviction
- Monies owed due to instances of fraud
- Some taxes
Although there are debts that cannot be dismissed with a bankruptcy case, those who have significant debt outside of these accounts find that they benefit from the loss of old debts they were once overwhelmed by. Even the brief time between filing and discharge allows for an opportunity to make extra payments on the debt that cannot be discharged under bankruptcy laws.
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