6 Types Of Debts You Can’t Kick Out In Bankruptcy

Bankruptcy, a popular debt solution, allows you to pay most debts and make a fresh financial start. But, there are a few kinds of debts that aren’t dischargeable.

This means you can’t get rid of a few kinds of debts in bankruptcy. If you’re planning to file bankruptcy (especially without getting any help from an attorney), then it’s important to know about the debts that aren’t dischargeable.

Otherwise, you might apply for bankruptcy unnecessarily and end up wasting time and money.

Have you purchased a car or an expensive piece of jewelry before filing bankruptcy? If so, then you have two options. The first option is to continue making payments to the lender. The second option is to give up the item.

A car you bought recently

Most people think about bankruptcy to discharge unpaid income tax. It isn’t impossible to discharge income tax in bankruptcy. But there is a strict eligibility criterion, which you need to fulfill.

Income tax

You have to list all your debts in bankruptcy. If your case is an asset case, then the debts that are not listed are non-dischargeable. An asset case is the one where you have money to distribute amongst creditors.

Debts you omitted in an asset case

Have you been penalized or fined by the government? If so, I’m afraid bankruptcy can’t give you any relief. No one can give you any relief. You have to pay the fines and penalties or they will stay with you till your last breath.

Debts you owe to the government

Millions of students and parents would have given a sigh of relief if student loan debts could be eliminated through bankruptcy. Unfortunately, in most cases, they can’t be discharged in bankruptcy proceedings.

Student loans

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