Posted on: 16 April 2015
If you are struggling to keep up with your bills and are going further into debt each month, you might think that filing for bankruptcy is your only option. The thing is, there are some debts that will not be forgiven with bankruptcy and will stick with you regardless of your financial situation. It is important to look at your entire financial picture with a qualified bankruptcy attorney to decide what steps might be best for your financial future. Here are four types of debt that you will most likely have to keep paying regardless of bankruptcy.
1. Federal School Loans
Some types of private loans can be written off with bankruptcy, but if you took out a federal loan for school, you will be expected to pay this off. Try to work with the loan agency to adjust your monthly payments or to file for hardship if you can. This can at least delay your payments and give you some wiggle room.
2. Back Taxes
If you owe income taxes, you will most likely have to pay these, especially if your debts were incurred in the last three years. Make sure that your lawyer has all of the facts and history on your owed income or property taxes. They can advise you on the best way to handle these payments and communicating with the IRS.
3. Child Support and Alimony
Not only can you not write off child support and alimony, this will keep adding up if you avoid making payments. Your wages may be garnished as well. You can go to court to lower your payments if you truly think that your financial situation has changed enough to revise the current settlement, but this can be a lengthy process.
4. Court Fines
If you are paying back fines for charges such as a DUI or criminal activity, this is not the type of payment that will go away with bankruptcy. Much like student loans, make sure to work with the courts to revise your payment plan or prove financial hardship for a delay in payment.
It is better to face the fact that these type of debts, loans and fines will not simply disappear. If you do have large personal loans or credit card debts as well, bankruptcy might be a good route, to get you in a better financial place. Being able to focus on paying the areas above and not worrying about other debts may help your overall picture. Be sure to review all of your debts with your bankruptcy lawyer in order to make the best decision for you.Share