For many individuals and businesses, bankruptcy eventually becomes the only option to remain afloat. Although bankruptcy seems like a viable solution for anyone in debt, the truth is that it cannot solve everyone’s problems. It cannot clear up all debts.

You should consider the types of debts you have before pursuing bankruptcy.

Debts you can never discharge

There are certain debts bankruptcy will never allow you to get rid of. They include the following:

  • Debts that occurred out of someone’s injury or death that resulted from intoxicated driving
  • Specific tax debts
  • Penalties and fines owed as a result of committing a crime
  • Alimony and child support

Additionally, you will continue to owe all HOA, co-op or condo fees when you file for Chapter 7 bankruptcy. If you have incurred any debts from your retirement plan, then those debts will remain intact, too.

Debts you can only discharge with an exception

For the most part, you cannot discharge regular income tax debt and student loan debt with bankruptcy. The only exception would be if you filed an appeal with the court to prove you are incapable of paying these debts off. This requires you to show how much you make and what your other essential expenses are.

Debts you can discharge unless a creditor objects successfully

Occasionally, a creditor will come forward to convince the court not to discharge certain debts. These are typically debts you incurred due to malicious acts or debts that came from a breach of your fiduciary duty. Creditors often object when a person spends a lot of money on a credit card a month or so before filing for bankruptcy. They view this as fraud, and you may need to still pay off certain purchases.