Many people think that filing for bankruptcy is the equivalent of waving a magic wand that entirely eliminates their financial worries. But if you are in debt, there is a good chance that some of your financial obligations will remain with you, even after your credit card debts and other bills have been discharged. That’s because there are some debts that simply cannot be eliminated, even by a bankruptcy court.

What this means is that even if you have seen your credit card bills, medical bills, mortgage and auto loans, and other personal debts waived, you will still need to pay other, non-dischargeable debts. These include:

• Most types of taxes
• Fines or penalties that you owe to the government
• Child support
• Alimony
• Student loans
• Compensation owed to personal injury victims as a result of a drunk driving accident
• Condo fee debts
• Criminal or court fines and penalties
• Attorneys’ fees for child support or custody disputes
• Debts that you did not list on your bankruptcy filing (unless your creditor was aware that you were filing for bankruptcy

In addition to the types of debts listed above, your creditors will also have the right to argue against you being able to discharge your debt to them. This occurs at a hearing before the bankruptcy court, and both you and your creditor will have the opportunity to explain why you should or should not be required to pay. This is usually done when you have charged more than $675 in luxury goods from a single creditor in the 90 days prior to your bankruptcy filing, though it also applies to fraudulently obtained debts or debts that occurred as a result of your willful or negligent actions towards another person or their property.

Filing for bankruptcy is serious business, and the courts have little tolerance for those who try to abuse or play the system, so it is important that you comply with all of the rules and required procedures. This means making sure that you don’t lie, destroy records, or try to hide property in order to avoid having it sold to meet your obligations. Failure to conduct yourself appropriately can result in the court denying your discharge, and so too can availing yourself of the system too often. Once you’ve had your debts discharged under a bankruptcy filing, there will be a minimum amount of time that must pass before you can file again.

For more information on how the bankruptcy rules apply to you and your situation, contact our experienced attorneys today to set up a time to meet.