When you’re deciding whether bankruptcy is right for you, it’s important to understand that not all debts are discharged in bankruptcy. There are some types of debts that you can’t wipe clean in a bankruptcy proceeding. Here are the types of debts that are not discharged in bankruptcy:
Child Support
Child support is never dischargeable in bankruptcy. Your child support order is not delayed or modified in any way by a bankruptcy proceeding. The state or even the federal government may continue child support enforcement actions against you.
Student Loans
Most student loans are not dischargeable in bankruptcy. There are a few limited exceptions. Generally, absent an unusual circumstance, your student loans continue even when you file for bankruptcy.
Criminal Fines, Costs and Restitution
If you’re convicted of a crime, the court orders you to pay fines, costs and restitution. These expenses are a part of your court sentence. You must make timely payments to the court even if you file for bankruptcy relief.
Debt for a 401k loan
A debt from a retirement plan loan may not be dischargeable in some types of bankruptcy. If you have a 401k loan, it’s important to carefully understand your options. A 401k loan may be dischargeable only in a Chapter 13 filing. A Brighton Beach bankruptcy attorney can help you determine what type of filing is most beneficial to you if you have a retirement plan loan.
Recent Luxuries
Bankruptcy law prevents you from buying luxury items on credit only to discharge the debt in bankruptcy a short time later. There are limits that apply to your purchases in the period leading up to the bankruptcy filing. If you buy too much before you file, you may not be able to discharge the debt as part of your bankruptcy.
Understanding Bankruptcy Law
The attorneys at Ursulova Law Offices work to help you understand what debts you can discharge in bankruptcy. An experienced Brighton Beach bankruptcy lawyer can help you categorize your debts and understand what bankruptcy can do for you. If bankruptcy is in your best interests, they can help you determine what chapter filing is best for you and what you can to do have the best result from your bankruptcy filing.