What Debts Are Not Dischargeable in Bankruptcy?

 Posted on December 31, 2024 in Discharge of Debts

Most normal debts are wiped away when you successfully complete the bankruptcy process. Credit card, medical, and personal loan debt can all be discharged. However, there are a few types of debt that you cannot discharge through bankruptcy. You will likely still be responsible for your student loan debts, some tax debts, and family support obligations after filing for bankruptcy. When you are considering filing for bankruptcy, you should talk to your San Antonio, TX bankruptcy attorney about what debts you might still owe after your bankruptcy. If your main source of debt is something that cannot be discharged, you might want to consider a debt relief solution other than bankruptcy.

Student Loans Are Rarely Dischargeable 

Student loans are a necessity for most people who are pursuing a college education. However, student loan debt can become insurmountable after graduation. Even college graduates who do find a good job after college can find it difficult to keep up with student loan payments. Unfortunately, under normal circumstances, you cannot discharge student loans through bankruptcy. In rare instances, students who have become permanently disabled can sometimes discharge student loan debt.

Family Support Obligations and Bankruptcy 

Bankruptcy does not affect child support debt. Parents will need to keep paying child support throughout their bankruptcy proceedings and cannot discharge arrearages. Spousal support payments work differently. Alimony debt may be dischargeable if you entered into the alimony agreement more than two years ago. You may also have options for modifying your alimony payments going forward through the family law courts.

Affirming Secured Debts

If you still owe money on an item like your car that you wish to keep and continue paying for, you may have the option of affirming the debt so that it is not affected by bankruptcy. Both you and the creditor will need to agree to this course of action. Your creditor will want assurance that you will be able to keep making payments on time.

Tax Debts Are Sometimes Dischargeable 

Older income tax debts that date back several years are sometimes dischargeable. You normally cannot discharge newer tax debts or business tax debts. The law surrounding tax debts and bankruptcy can be extremely complicated. You will need to consult an attorney about your particular tax situation to determine whether you may be able to discharge tax debts.

Contact a San Antonio, TX Bankruptcy Lawyer 

Law Offices of Chance M. McGhee is committed to helping people find meaningful relief from debt. Experienced Bexar County, TX bankruptcy attorney Chance McGhee will assess your situation to help you decide whether bankruptcy is right for you. Contact us at 210-342-3400 for a complimentary consultation.