What Bankruptcy Cannot Accomplish

What Bankruptcy Cannot Accomplish

Many people benefit from a well-structured, rightly timed bankruptcy filing. While bankruptcy can give individuals some closure on many different debts and provide a fairly blank slate from which you may build a better financial foundation, there are limits to what bankruptcy can do for you. Knowing these limits is useful in giving people accurate expectations before they file for Chapter 7 or Chapter 13 bankruptcy.

What Types of Debts Are Not Dischargeable?

In the context of discussing what bankruptcy is not able to do, the most important consideration is the debts that will stay with you even after you have received a discharge in bankruptcy. Here are some common examples of these debts:

  • Student loans. Unfortunately, student loan debt is not eligible for discharge under any bankruptcy except in very rare circumstances -- what is often described as an “undue hardship.”

  • Unpaid tax liabilities. Usually, outstanding tax liabilities may not be discharged in a Chapter 7 or Chapter 13 bankruptcy unless it is fairly old.

  • Alimony or child support. Court-ordered payments to an ex-spouse or custodial parent of your children is not something that can be wiped away due to a bankruptcy.

  • Criminal restitution or court fees.

  • Property lien. While it is true that the automatic stay will temporarily cease eviction or foreclosure actions, a lien that has been placed on your property due to non-payment of a mortgage will not go away until all the mortgage payments have been made.

Contact Attorney Rashad Blossom

Bankruptcy might not be a cure-all for all your ailments, but it is a great option for many people who just need a little breathing room to catch up with everything. Before you file, though, it is important that you retain the services of an experienced and knowledgeable bankruptcy attorney. To see how Blossom Law can help your financial situation, please give us a call today at (704) 271-9078 for a free phone consultation into your case.


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      The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Time-sensitive information should not be sent through this form. We are required by law to state that we are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.