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*
There underlined 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.