14 Misconceptions about Bankruptcy, Part 3

All my debts will be discharged in bankruptcy. 

False.  There are some debts that cannot be discharged in bankruptcy.  These debts are considered unsecured priorty debts.  They are:

  • student loans,
  • taxes, custom duties, and penalties owed to a federal, state or local government agency,
  • domestic support obligations such as child support and spousal support owed to a spouse, former spouse, debtor’s child, or the legal guardian of debtor’s child, or governmental unit to whom the support has been assigned,
  • extensions of credit in an involuntary case,
  • wages, salaries and commissions, including vacation, severance and sick leave pay owed to employees and commissions owed to qualifying independent sales representatives,
  • contributions to employee benefit plans, 
  • claims of certain farmers and fishermen,
  • deposits for the purchase, lease and rental of property or services for personal, family, or household use, and,
  • claims for death or personal injury resulting from the operation of a motor vehicle or vessel while the debtor was intoxicated from the use of alcohol, a drug or another substance.

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