Which Debts Do I Still Owe After Bankruptcy?
When your bankruptcy is completed, many of your debts are ''discharged.'' This means
they are canceled and you are no longer legally obligated to pay them. However,
certain types of debts are NOT discharged in bankruptcy. The following debts are
among the debts that generally may not be canceled by bankruptcy:
. Alimony, maintenance, or support for a spouse or children.
. Student loans. Almost no student loans are canceled by bankruptcy. But you can
ask the court to discharge the loans if you can prove that paying them is an ''undue
hardship.'' Occasionally, student loans can be canceled for reasons not related
to your bankruptcy when, for example, the school closed before you completed the
program or if you have become disabled. There are also many options for reducing
your monthly payments on student loans, even if you can't discharge them.
. Money borrowed by fraud or false pretenses. A creditor may try to prove in court
during your bankruptcy case that you lied or defrauded them, so that your debt cannot
be discharged. A few creditors (mainly credit card companies) accuse debtors of
fraud even when they have done nothing wrong. Their goal is to scare honest families
so that they agree to reaffirm the debt. You should never agree to reaffirm a debt
if you have done nothing wrong. If the company files a fraud case and you win, the
court may order the company to pay your lawyer's fees.
. Most taxes. The vast majority of tax debts can not be discharged. However, this
can be a complicated issue. If you have tax debts you will need to discuss them
with your lawyer.
. Most criminal fines, penalties and restitution orders. This exception includes
even minor fines, including traffic tickets.
. Drunk driving injury claims.