What Kind of Debts will Bankruptcy not get Rid of

Bankruptcy is an effective, and perhaps the only real, tool to help you get a new financial start.  Bankruptcy is a completely legal solution, and was provided for by the United States’ founding fathers in the Constitution.

Bankruptcy is the perfect solution for people who have become overwhelmed by debt.  If you find yourself feeling this way, you a re not alone.  Among the top reasons for filing bankruptcy are: unemployment, divorce, and medical emergencies.  Even people who consider themselves financially responsible can find themselves in over their head through no fault of their own.  All it takes, especially in these economic times, is a minor accident that requires an expensive trip to the emergency room.

Depending on whether or not your choose or qualify for a Chapter 7 or a Chapter 13 bankruptcy, most, if not all, of your debts will be eliminated.  Once your debts have been discharged, you’ll have the breathing room you need to start again.  Instead of worrying about how you’ll be able to pay off credit card debt that has piled up, you’ll be able to focus on better financial management that will allow you to take care of yourself and your family.  Imagine the relief you’ll feel!

Unfortunately, bankruptcy will not eliminate all debts.  Before you decide whether or not bankruptcy is your best option, you should review the following list to find out if any of your debts are prohibited from being eliminate.  Section 523(a)(16) of the Bankruptcy Code provides that the following debts will not be discharged in bankruptcy:

-Taxes which were due less than three year before filing your bankruptcy petition or which the debtor attempted to evade fraudulently;

-Debts for money which was obtained through fraud, false pretenses, or a false representation;

-Debts which have not been listed in the bankruptcy petition;

-Debts for money which was obtained through fraud while acting in a fiduciary capacity or through embezzlement;

-Domestic support obligations;

-Debts which arise from a malicious or willful injury by the debtor to another or to another’s property;

-Fines, penalties, or forfeiture payable to and for the benefit of a governmental entity;

-Student loans;

-Death or personal injury judgments arising from the debtor operating a vehicle while under the influence;

– Debts that could have been discharged in an earlier bankruptcy, but which the debtor waived discharge;

-Homeowner’s association dues that arise after the debtor has filed his bankruptcy case.