A Brockton bankruptcy attorney is often asked by a client if they will lose their house or car? Most of the time, the answer is no. Filing a Chapter 7 personal bankruptcy will allow you to discharge most of your debts, but not all of them. Under the Bankruptcy Act of 2005, certain debts can not be discharged.

Student loans can not be dismissed. This applies to any student loan, whether it is from the federal government, a non-profit institution or a private lender. One should be very careful before amassing a large amount of student debt because it will stay with you throughout your life. If you do not pay off your student loans, it will continue to accumulate interest and penalties until the account is settled. Your credit score will suffer and it can be very difficult to get a mortgage or other type of credit in the future.

Child support or alimony is another debt that can not be discharged in personal bankruptcy. The law protects children and ex-spouses from losing their court ordered payments. While such debts can not be dismissed, a person who files Chapter 7 may claim he or she has no means to pay alimony or child support. In such a case, the affected party can seek remedy through the courts.

You are also unable to avoid paying debts that are incurred in the pursuit or process of filing for divorce or separation agreement. This includes such things as attorney and filing fees.

Any debts that result from the commission of an intentional tort can not be discharged. A tort is a willful or malicious act. For instance, if you break into a store and cut your arm on the glass, you can not discharge the cost of your medical bills in bankruptcy.

A few other things are also not permitted on a personal bankruptcy petition. You can not get out of those traffic tickets you have accumulated over the years and you can not renege on court ordered restitution. Any fraudulent dealings that caused you to incur debt will not be discharged in bankruptcy.

Some people who are contemplating bankruptcy will max out their credit cards or take large cash advances just before filing. The courts are wise to such actions. Consumer debts on luxury goods in excess of $500 and which are incurred within 90 days of filing bankruptcy are not allowed to be discharged. Cash advances of $750 or more that are incurred within 70 days are also exempt from discharge.

These are most of the situations when you can not discharge debt. For more information, schedule a free consultation with a Brockton bankruptcy attorney.