Does debt relief mean eliminating all debt? Not always

Needing financial help can bring about mixed emotions. Some Pennsylvania residents may feel confused about how they ended up in such a difficult ordeal, and others may feel angry that medical care is so expensive that an emergency decimated their finances, even with insurance. Whatever the case, bankruptcy can often help qualifying individuals find freedom from debt burdens. However, it is important to know that not all debts are discharged through this debt relief process.

If individuals are worried about being behind on alimony or child support payments, it is important that they understand that bankruptcy cannot help with this. This process never discharges these types of debts. It also does not discharge debt associated with unpaid taxes, lawsuit settlements and other court orders, and fines set forth by government agencies.

Additionally, it is possible for creditors to object and prevent a debt from being discharged through bankruptcy. Creditors must have a valid reason for the objection, such as the debt resulting from fraud or embezzlement, debt resulting from a purchase made within 90 days of filing for bankruptcy, debt resulting from a breach of fiduciary duty and others. Additionally, if a person does not list a creditor on the bankruptcy petition, that creditor can still pursue the debt.

Knowing that bankruptcy will not always discharge all of a Pennsylvania resident’s debts does not have to be a deterrent against using this debt relief option. Filing for bankruptcy may help discharge other debts and allow a person to have enough funds to better address these remaining balances that are not forgiven. Of course, each person’s case different, and the outcomes can hinge on numerous factors, including a person’s determination to see the process through.