Non Dischargeable Bankruptcy Debts

Many file bankruptcy as a way to start over and get out of debt completely. These people of course, have proved they do not have the means of paying it back, and they go through the legal process of having their debt discharged. It does sometimes have a negative connotation, however if you're in the situation and know that you have no way out, don't worry, many major companies and even celebrities have had to file.

Many however, are unaware that one hundred percent of their debt may not be dischargeable with bankruptcy. There are many things that will not be covered when filing for chapter seven. These include and are not limited to: taxes that became due within the past three years, taxes you may have on a trust fund, restitution or criminal fines. In addition, penalties to the government, not including tax penalties.

Student loans may not be discharged, and usually neither may your mortgages. In these cases, you will probably have to enter some sort of repayment agreement to the company. The court will not discharge debt that they believe could be detrimental or unproductive to the society's environment, this includes child support or alimony payments, they know that discharging this would be very negative to those that rely on the money.

You also may not have debt discharged that was used to rid yourself of non dischargeable debt, for instance a credit card that you used to pay off your student loans. There are much more things that courts will judge non dischargeable so make sure that these are not the majority of the debts you are trying to divest yourself of. Make sure if you are going to claim bankruptcy it is actually beneficial for you.

Contributing National Payday Staff Writer

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