5 Things A Chapter 7 Bankruptcy Can't Do

Being in a financial bind can create a great deal of stress in your life. If you are suffering a job loss or a significant change in your income, you may need to consider filing for a Chapter 7 bankruptcy. Being able to achieve this legal status may help you get many of your debts discharged. However, it is   equally important to know what this type of bankruptcy won't achieve for you.

Student Loans

If you borrowed money to obtain your education, you will be responsible for paying this back. Regardless if you can obtain the bankruptcy or not, doing so will not permit your student loans to be discharged at all.

Alimony or Child Support

Have you been ordered by the court to pay spousal support? If so, you must pay the amount that has been set. Qualifying for bankruptcy won't affect alimony payments at all.

Additionally, if you are ordered to pay child support, this won't be changed either. The only way you can adjust the amount of your payment is by filing a motion with the court and attempting to do so.

Seizure of Secured Property

Bankruptcy is typically used to get unsecured debt discharged. So, if you have a mortgage payment that you can't make, it is possible the bank can attempt to seize your home by putting a lien on it.

Bankruptcy can get rid of the debt, but not prevent a lien from being put on your secured property.

Tax Debts

Do you owe back taxes or have endured an audit and were informed you owed more money for taxes? If so, these will have to be paid, and bankruptcy won't get rid of these for you.

However, it is possible you can arrange an agreement with the Internal Revenue Service to make regular installments until the taxes are paid in full.


If a legal action has been taken against you and you are found guilty of committing a crime, you may be required to pay the plaintiff. This is money that bankruptcy can't get rid of and you will have to find a way to make the payment.

Finally, there are many things that a bankruptcy can do for you, but there are also things it won't accomplish. Be sure to work closely with your bankruptcy attorney, one like Brackett & Strunk LLC, to learn the full details of what you can and can't expect with this process.