What Types of Debts Cannot Be Wiped Out in Bankruptcy?

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Whether filing for a Chapter 7 bankruptcy or Chapter 13 bankruptcy, there are certain debts that you may not discharge when filing your petition.  These debts include the following:

Federal taxes and state taxes are typically not wiped out in bankruptcy. Any type of lien issued by the government is not eligible to be discharged through the bankruptcy.  We will include your debt in the bankruptcy petition so that the State of Federal authority will be notified of your filing.  It is your responsibility to contact the IRS or State to make payment arrangement.  If you fail to pay your current tax bill or repay your back taxes, the State or IRS would likely put a lien on your home or another asset that you own.  However, there are certain times where taxes may be wiped out. However, it is very rare that you will be able to have taxes wiped out.

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Government loans such as federal student loans cannot be discharged through bankruptcy and must be paid back, in full, to the agency that issued the loan.

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Court ordered domestic support obligations may supersede the Bankruptcy filing.  For instance, if you have a court ordered child support or alimony payment already in place with the Court, this payment is not a viable debt to be discharged in bankruptcy.  If you fail to make these payments, the Court may garnish your wages in order to collect the debt.

Any debts incurred AFTER you have filed your bankruptcy petition may not be wiped out. You may not incur additional debt and then contact your attorney requesting that the debt be added to your bankruptcy filing.  This is fraud and could result in further legal action.

Debts incurred within ninety (90) days of filing your petition are closely scrutinized by the Bankruptcy court and may not be eligible for discharge with your Bankruptcy filing if they are deemed to be fraudulent. If you go out and purchase items on a credit card, knowing that you were then going to file bankruptcy, the debts will not be wiped out.