Bankruptcy won’t discharge these debts

On Behalf of | Dec 20, 2021 | Bankruptcy |

When a financial crisis hits a Tennessee household, the individual responsible for paying the bills may start to explore debt relief options. In some cases, money problems can be resolved by selling assets or taking on a second job to generate more income. In some cases, however, it may be best to file for bankruptcy; however, it is important to note that not all types of debt are dischargeable through bankruptcy.

A person who owes money for these debts will still owe after bankruptcy

Before filing for bankruptcy, it is helpful to learn what options are available. A person considering filing for bankruptcy must also determine if he or she meets the qualification requirements for his or her program of choice. The following list includes several types of debt that will still be owed even after filing for bankruptcy:

  • Child support
  • Alimony
  • Court-ordered compensation from a personal injury claim
  • Tax liens
  • Debts not listed on the bankruptcy application

Regarding certain debts, such as a student loan, a bankruptcy court may discharge a portion of the debt if the person who owes money can prove that the debt is causing undue hardship upon him or her.

Choosing a bankruptcy plan that fits a specific person’s needs

Once it is determined which debts can be discharged, a person must decide which bankruptcy program is the most viable option in his or her case. For instance, someone with a reliable means of income that is at or above the median level in his or her state may qualify for Chapter 13 bankruptcy as opposed to Chapter 7. It is a good idea to schedule a consultation with a bankruptcy law attorney to seek a review of one’s case and recommendations on which program is the best fit in a given set of circumstances.


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