4 Things That A Chapter 7 Bankruptcy Won't Pay

3 February 2017 by Jonathan Phillips

If you're going through a hard financial time, you may be forced to file for bankruptcy. This is a legal status that may help relieve some of your debt. Many individuals think that having success in the filing and completion of bankruptcy will remove all of the outstanding debt this person has. However, this is simply not the case, and you should be aware of some things a Chapter 7 bankruptcy will not help you with at all.

Child or alimony support

If the court has ordered you to pay money to your ex-spouse or to help raise your child, you will need to continue paying this amount. The precise figure you will need to pay is typically based on your income and some other factors.

Even if you are eligible for bankruptcy, any child support or alimony payments you are forced to make must be met. Failing to meet these obligations could cause you to pay fines or face penalties for not doing so.

Payments to the Internal Revenue Service (IRS)

It's a fact that you will need to pay federal income taxes on an annual basis. The amount that you're required to pay is typically based on your income. 

This is money that you owe and must be paid, or you could potentially face time in jail or steep fees for not abiding by the rules of the government.

Student loans

Borrowing money to get your education is ideal if you need to do so. This may be the only way you can secure the degree you're after that can be necessary to have more success in life.

However, student loans can be extensive, and you may falter financially during various phases of life and feel you're unable to pay these. This is something you will need to work out on your own because bankruptcy typically will not help you with this debt.

Payments due to lawsuits

Being involved in a legal dispute can be a real challenge for you. However, if you're ordered by the court to pay your opponent a certain amount of money,  you will have to do this yourself.

Being aware of what a bankruptcy will and won't pay is sure to be helpful to you in the long-term. This can turn your expectations into reality. Be sure to rely on the expertise of a bankruptcy attorney for additional info to assist you with this process today.

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