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Which debts typically survive bankruptcy?

The debts piled high, teetering hazardously without a net. Still, you were unprepared for the inevitable financial collapse that overwhelmed you and your family. For months, you pondered whether bankruptcy was a logical option, and, now, you know that it is. Bankruptcy usually allows you to keep your home and provides legal protection from overzealous creditors while resolving most debts.

You want to have a clean financial slate. With bankruptcy, you can come very close to just that. But what about those debts that survive bankruptcy? No matter what, you will have to pay off some of these non-dischargeable debts after a personal bankruptcy filing.

Alimony, child support, student loans and taxes

In reality, bankruptcy will not get rid of all your debts.

Some debts remain standing after bankruptcy. Here are some of those non-dischargeable debts:

  • Alimony/spousal maintenance: Although it remains challenging to get spousal support payments modified, it is possible.
  • Child support: Garnishments continue to be deducted from your paychecks for child support.
  • Most taxes: If you remain unable to pay your taxes, the IRS may suspend the debt and pursue collecting it once the bankruptcy concludes.
  • Student loans: Generally this is true, but some bankruptcy judges provide undue hardship discharges when it comes to student loans.

Not all debts disappear after a bankruptcy. Still, bankruptcy allows you to get past difficult financial times and move on with your life while understanding the lessons you learned when faced with significant debt.

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