In plain terms, Bankruptcy is the process to help individuals in financial crisis get back to sound footing by (getting rid) of debt without paying for it. It’s a safety net for individuals and families to be financially sound and have a chance to secure a sound financial future and eventual retirement.
But, not all debts will be automatically forgiven through a Chapter 7 bankruptcy. Here is a list of the debts that you will still have to pay:
- Child Support and Alimony
- Tax Debt
- Costs, fines, and restitution for breaking the law
- Student Loans
- Injuries you caused while drunk driving or driving under influence of illegal drugs
- Marital debts that are not considered support*
- Court fees*
- Loans on your retirement plan*
- Debts not discharged in previous bankruptcy order*
The italicized debts above start as non-dischargeable.
*These debts may be dischargeable under a Chapter 13 Bankruptcy but are not dischargeable in a Chapter 7 bankruptcy.