May I Use Bankruptcy to Get Rid of All My Debts?
No, bankruptcy does not discharge all types of debt. If a debt is excepted from discharge you remain legally responsible for it. Exceptions include most tax claims, alimony, and child support, many property settlement obligations from a divorce or separation, most student loans, fraud debts, and debts from a drunk driving problem. Chapter 7 bankruptcy also will not release you from damages for "willful and malicious" acts such as assaulting another person. Many debts incurred though the debtor's fraud are also non-dischargeable. In this regard, there is a presumption of fraud in last minute credit card binges involving more than $1075 in either cash advances or luxury purchases within sixty days before a bankruptcy filing.
Family Legal Guide
Copyright © 2000, 2002 American Bar Association
