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When you consider the impact that a chapter 7 bankruptcy filing can have on filers, it's easy to understand the idea of taking full advantage of the opportunity for debt forgiveness. Not all debts, however, can be forgiven with a bankruptcy filing, and knowing what will remain after your bankruptcy is final should be taken into consideration when you make your "to file for not to file" decision. Read on to find out what debts cannot be discharged with a chapter 7 bankruptcy.

A taxing attitude about bankruptcy.

Owing taxes to the IRS can cause untold misery, particularly when you fully understand the impact of the interest and penalties they charge on unpaid taxes. While trying to make those installment plan payments may be challenging, you won't be able to whisk that debt away with a filing. Any tax debts over 3 years may be included in your bankruptcy, but you must continue to pay any more recent tax debts. On a related subject, liens placed on property prior to your bankruptcy filing must remain, however, no new liens can be placed once you file. All is not lost, however, in addition to the installment plan offered by the IRS, you may also be able to work with the IRS in something called an Offer to Compromise.

Learning your lesson.

In most cases, you cannot use a chapter 7 bankruptcy to discharge a student loan, whether its government-backed or privately held. You may be able to qualify for a hardship exception if you can show that paying the debt would cause you to suffer from an undue hardship, however and if your payments are up to date at the time of application.

A child's needs come first.

Children are often the most innocent victims when it comes to the financial ravages that a divorce can bring. The courts place the needs of minor children at a very high priority and take very seriously any attempts for a parent to discontinue paying child support as ordered. Not only can you not include back child support debt in a chapter 7 (or any chapter) bankruptcy, you also can expect to have any wage garnishments that were placed due to child support to continue unabated. The same rule applies to any property liens that were in place because of owing back child support. If you are suffering so much from a financial hardship that you need to have your child support payment amounts adjusted, you must petition the courts and prove your hardship.

To learn more about these and other debts that cannot be discharged, contact a bankruptcy attorney like Price James S & Associates.