What Bankruptcy Cannot Do

: Reese Baker & Associates

  Filed under: bankruptcy


In the United States, you have the legal right to eliminate your debt when your financial obligations are more than your income. There are some debts; however, that can not be eliminated in bankruptcy.

Child support and alimony will never be able to be discharged in bankruptcy. Student loans are very difficult to have discharged. You must prove that you are now, and in the future, unable to work and provide an income for yourself or your family. Criminal fines and court restitution orders will also not be discharged in bankruptcy.


Co-signers and co-borrowers on any of your debt may still be held liable for some or all of your debt that was discharged in bankruptcy. If it is a spouse, they may want to file a joint bankruptcy petition with you so they will not be held responsible for the debt.

Any debt you acquire after your bankruptcy paperwork is filed will not be included in the bankruptcy, you will still be responsible for paying on that debt.

Chapter 7 Bankruptcy

If you received a Chapter 7 bankruptcy discharge within the last eight years, you might not be able to receive another Chapter 7 elimination of your debts. The wait is not as long if you filed a Chapter 13 bankruptcy. Speaking to a bankruptcy attorney will let you know the legal requirements for your case.

Bankruptcy will not eliminate secured debt. Secured debt is when a creditor holds the property the loan is on as collateral, such as a home mortgage or car note. When you file for bankruptcy, you can pay back any past debt on your secured loan, but if you want to keep your home or vehicle, you will have to continue to make the payments.

If you are considering bankruptcy and you wonder what can be eliminated and what debts cannot be discharged, talk to a McAllen bankruptcy attorney to find out what options you have for your unique financial situation.