What Bankruptcy Can’t Do

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.