Many individuals that are entering into a bankruptcy often do so with the assumption that all of their debts are going to be wiped clean. They are often disappointed when they find out that there is such a thing as non-dischargeable debts. That doesn’t mean that the bankruptcy is not the right choice depending on how serious your financial situation is.
Many individuals enter into a Chapter 7 bankruptcy. There are specific debts that this bankruptcy will not deal with or discharge. These are student loans, or debts that are related to sales tax or employee withholdings. Also any debts that you have from fines that are outstanding such as speeding or other violations will not be handled in your bankruptcy.
If you owe child support or have alimony obligations these too will not be addressed in your bankruptcy. If you have any debt that you will be responsible for paying as a result of your divorce than most often these will not be included as well. Of course any debt that resulted from fraud will not be part of your bankruptcy.
While the list seems quite lengthy you will find that you probably have a great deal of debt that falls under the dischargeable category and these are the debts that you want relief from and are the ones that your bankruptcy will assist you with.
Even if you end up with a certain amount of debt that is not dischargeable, getting rid of whatever amount of debt you can, should put you in a much better financial situation to be able to handle the debt that you are left with.