How Do You Know What Bankruptcy Does NOT Cover?
Declaring bankruptcy can help when financial debt becomes too unwieldy to handle. But it will not erase all debts. There are areas of debt that will be considered non-discahargeable — in other words, you will still have to pay. Here is how to know what bankruptcy does NOT cover. Filing for bankruptcy will usually not relieve obligations on domestic support like child or spousal support. The IRS and the State are still owed any taxes that have been incurred within the past three years. These are considered ‘priority taxes’. Only if you can prove ‘undue hardship’ can student loans be relieved by filing bankruptcy. And you will have to do research if you have any debts that involve government files and penalties. Some of these may be forgiven; others will not. Absolutely no credit card or fraud debts will be forgiven from filing bankruptcy. Also any debts obtained by ‘false pretenses, representation or actual fraud’ will be considered under this category of debt and must still be paid. D
