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Broward County
954-566-9000
Palm Beach County
561-487-0200
Miami-Dade County
305-444-8660
Indian River County
772-564-1321
Your Road To A Better Future

Debts that won’t go away in bankruptcy

On Behalf of | May 28, 2021 | Bankruptcy, Chapter 13, Chapter 7 |

Filing for bankruptcy may make it possible to eliminate credit card, medical or other debt balances. In some cases, it may be possible to do so without losing assets such as your Florida home. However, there are some debts that you cannot eliminate regardless of whether you decide to file for Chapter 7 or Chapter 13 protection from creditors.

Child support payments do not go away

Child support payments are designed to ensure that the public isn’t held responsible for ensuring that your son or daughter is properly cared for. Ultimately, your obligation to provide for your offspring doesn’t end simply because you’re having financial troubles. However, it may be possible to ask a judge to modify an existing support order.

Student loan payments are rarely discharged

There is a chance that a judge will eliminate your student loan balances in a bankruptcy case. This may be true if you can prove that making future loan payments would create an undue hardship. It’s important to note that there is no uniform definition as to what an undue hardship looks like. Therefore, it’s difficult to predict your odds of obtaining a discharge. An attorney may be able to review your case and determine if bankruptcy is the best way to obtain relief from this type of debt.

You’ll likely need to pay your tax debts

Unpaid federal income taxes can’t be discharged if the balance was due less than three years before you filed for bankruptcy. Generally speaking, tax debt can’t be discharged if you filed a frivolous or fraudulent return. Finally, if the balance owed wasn’t assessed at least 240 days prior to submitting your petition to a Florida court, it won’t be eliminated in a bankruptcy proceeding.

If you are having trouble keeping up with your debt obligations, it may be in your best interest to consider bankruptcy. An attorney may be able to provide more insight into the process of filing for protection from creditors, the benefits of doing so and what types of debts may remain after your case ends.