Although it can provide solutions for overwhelming debt, filing for bankruptcy is often a last-ditch effort for most people. However, you may need a fresh start without the cloud over your head.
No matter what type of bankruptcy you file, there are several debts that a judge will not discharge.
Tax liens and unpaid income taxes are not typically discharged unless the debt is old. However, you can work with federal, state and local government agencies to reduce or discharge taxes that are from several years prior. Unfortunately, you still have to pay the fees and penalties you owe government agencies.
Personal injury awards
If a judge ordered you to pay damages in a personal injury case, you may still have to fulfill your obligation. This is especially true for drinking-and-driving cases where the incident injured or killed other drivers and passengers.
If a judge ordered you to pay child support or alimony, you are still responsible for these debts. You also have to pay any back support as well as any other debts you owe to your children or former spouse. You should also prepare to pay your child custody attorney’s fees as well.
Many individuals file for bankruptcy due to their high student loan payments. However, if you took out federal student loan debt to pay for your education, you typically have to repay these debts. You may have your student loans discharged if you can prove undue hardship (which is very difficult to do in Louisiana). You can also apply for deferments and forbearance periods that help you delay payments until you can better afford them.
In some cases, you cannot get any debt you do not list in your bankruptcy petition discharged. Therefore, take time to research and list all your debts. Then, evaluate whether bankruptcy is the best option for your situation.