What bankruptcy cannot do for you

We present you in this article, what bankruptcy can do how this process can help you when you want to clear your debts. Even if bankruptcy looks as the perfect solution in many cases you have to know that there are certain situations when this process cannot help you.

Here’s what bankruptcy cannot do for you:
Cannot stop the reclaiming of a property.
The bankruptcy process wipes out unsecured debts but it does not eliminate liens. So if you have a secured debt you cannot stop the creditor from repossession the property. The bankruptcy will erase the debt but you also loose the property.

Bankruptcy doesn’t eliminate alimony or child support
These 2 debts survive bankruptcy – you will continue to owe and pay in any situation. When is about these 2 items is like you never declared bankruptcy and if you go for Chapter 13 paying these will be included in the plan.
In 95% of the case it doesn’t erase student loans
In most of the cases you will have to continue paying this debt even after you declared bankruptcy. This type of debt can be discharged only if you can prove that you cannot pay this loan now and there are no chances to do this in the future.
Clear most of the tax debts
This is a very hard thing to do. Eliminating the tax debt is not easy and is possible if the debt is very old. There are a lot of requirements in this case so be prepared for a long and hard process.

Clear additional no dischargeable debts
The next debts are not dischargeable for Chapter 7 or Chapter 13 bankruptcy:
- Debts you didn’t put in your bankruptcy papers
- Debts for personal injury or death caused by
- Fines and penalties imposed for violating the law