If you decide to file for bankruptcy, it is likely because you have overwhelming debt. You may have been trying to pay it back on your own, but it becomes clear that it will be impossible for you to do so. The bankruptcy filing can help you consolidate that debt into a repayment plan or liquidate non-exempt assets so that the rest of the debt can be forgiven.
Does that mean you can include any type of debt at all? It does not. While you certainly may want to include things like credit card debt or medical bills, there are certain types of debt that you cannot discharge through bankruptcy.
Family law orders
To begin with, there are some financial court orders that can be issued during a family law case, such as a divorce. Perhaps you have been ordered to pay spousal support to your ex. Maybe you have been ordered to pay child support. These financial obligations are going to remain, even if you discharge other debts in bankruptcy. If you want to address them, you have to ask the court to modify the support order directly.
Back taxes
Similarly, if you owe back taxes, such as unpaid income taxes, you typically cannot discharge them through bankruptcy. Instead, you need to work with the IRS or other tax entity to set up a repayment plan or an offer in compromise.
Student loans
There are some situations in which you can seek relief from student loans if you can demonstrate that they create an undue financial hardship. However, in most cases, you are unable to discharge student loans through bankruptcy.
Exploring your options
It is important to know what can and cannot be included in a bankruptcy filing. As you work your way through the process, be sure you understand all of your legal options.