Bankruptcy and the Debts That Cannot Be Wiped Out

Bankruptcy and the Debts That Cannot Be Wiped Out

While bankruptcy filing can help eliminate some of your debts, there are still those you cannot discharge. Note that some debts are never wiped out, while you can discharge other debts only if you can prove to the court that they should be. In other cases, you can eliminate certain debts unless a creditor successfully convinces the court that they shouldn’t be.

Utah Bankruptcy Pros and other bankruptcy attorneys in Utah share some of the debts that you cannot wipe out:

Student Loans.

In most cases, all education or student loans are exempt from bankruptcy discharge. These also include private lender loans, federal student loans, and loans directly from school. Elimination, however, may be possible if you can prove that you have a permanent disability and may not be able to work again.

Secured Debt.

You may not be able to keep a newly purchased car or valuable jewelry if you file for bankruptcy. You can only do so if you agree to continue paying the lender. The security interest of the lender means that you need to pay in exchange for using the item. You only have two options: lose it or pay for it.

Alimony and Child Support.

Your obligation to pay child and spousal support remains after bankruptcy is over. You will also need to pay the remaining balance you owe at the time of filing. The same is also true for ex-spouse legal fees and credit card debt if you agree to pay them in your name the name of your ex-partner.

Tax Liability.

While you can discharge some income tax liabilities, this comes with tight restrictions. This is a very complicated issue, so it Is best to contact a bankruptcy attorney. Lack information or guidance can cause you maintain certain tax liability when you can simply eliminate them.

Debts From Malicious Conduct.

Debts due to someone’s injury or death resulting from your malicious conduct like driving under the influence cannot be discharged in the case. The same is also true for restitution and penalties for breaking the law.

As the topic of discharging debts in bankruptcy is complicated, you should hire a bankruptcy lawyer. This is to discuss your situation with a professional and obtain the right assistance.