Debts That Don’t Go Away When You File for Bankruptcy
Many people think that bankruptcy means that all your debts will be immediately forgiven and you will start with a clean slate. This is not often the case. Not only are your assets liquidated frequently, some debts are not even payable in the event of bankruptcy.
The personal finance site Super Savings Tips lists several types of debt that cannot be settled in bankruptcy. For example, student loans are usually unpaid , although there are some exceptions for extreme financial hardship. However, as a rule, your student loans stay with you for life, even if you file for bankruptcy. Some others include:
Debts you owe to the state : have you been punished or fined by the government? If so, then I am afraid that bankruptcy will not bring you any relief. Nobody can make it easier for you. You must pay fines and penalties, otherwise they will stay with you until your last breath. If you have further questions about government debt and how it will be treated in a bankruptcy case, consult a lawyer.
Alimony and Alimony: Alimony payments and alimony are not payable in the event of bankruptcy. These two amounts are basically the amount your child or ex-spouse needs to cover basic living expenses. Debts that you owe due to the division of family property are not eligible for such support. In some states, these debts are payable in the event of bankruptcy.
Recently Bought Car : Did you buy a car or an expensive piece of jewelry before filing for bankruptcy? If so, you have two options. The first option is to continue paying the lender. The second option is to abandon the subject.
For most people and businesses, bankruptcy is a last resort. It is also widely misunderstood . For more information, go to the full version of the message at the link below.
6 Types of Debt You Can’t Ditch in Bankruptcy | Super Saving Tips