Thinking About Bankruptcy? Know What Won't Be Discharged

Posted on: 15 April 2019

While you may think that filing for bankruptcy is the answer to all your financial problems, it is not always the case. Some debts are not allowed to be discharged, so you'll still need to pay them off after everything is wrapped up in court. Here are those debts that won't be discharged so you can be well aware of what they are.

Housing Fees

Is part of the reason for your bankruptcy filing due to your house costing too much money? If so, know that bankruptcy won't free you of all the debts related to your home. 

If you live in a condominium, you will still be responsible for paying those monthly fees to the HOA, including fees that you didn't pay while sorting out your bankruptcy. If you own a house and live in a housing association, those monthly dues will still need to get paid as well up until the home is no longer yours.

Government Fees

Most fees that you owe to the government will still be owed after your bankruptcy, so it is worth staying on top of any outstanding bills that you have with them and making sure that they are paid in full.

This won't affect your bankruptcy, where paying some bills can result in a clawback where the money is actually taken back. While clawbacks are meant to protect certain creditors from getting preferential treatment, this is not the case for government organizations.

Know that not paying a government agency will also result in late fees and any additional penalties laid out by the agency. Stay on top of these payments the best you can to avoid paying even more money after a bankruptcy.

New Debts

Once you decide to declare bankruptcy, even before the paperwork has been filed, you cannot take on new debts with the intention of not paying them back. If the creditor can prove that you made a purchase with the full intention of never having to pay them back, that debt may stay with you when the bankruptcy is finished. Don't assume that this only applies to debts acquired after paperwork has been filed, since it can cause you to start your new financial life with old debts that will not go away.

Have a debt that you're not sure about? Reach out to local bankruptcy attorney services for more info. They can look at your finances and let you know what will and will not be discharged.