Let’s be frank – bankruptcy cannot cure every financial problem. In a bankruptcy it’s usually not possible to :
- discharge certain types of debts, such as alimony, child support, student loans, governmental fines and certain taxes
- release co-signors from their liability on a joint debt
- discharge debts you incur AFTER filing bankruptcy
- change the rights of secured creditors – these would be mortgage lenders or creditors that hold your car note. If you’ve fallen behind on your monthly payments you can re-organise and pay that debt back over a period of time but going forward you need to pay your monthly obligation to avoid a foreclosure or repossession.