When filing bankruptcy what debts are not covered?

Student loans, priority tax debt, and restitution are not generally dischargeable in bankruptcy. Whether your taxes are priority (not dischargeable) or non priority (dischargeable) debts depends on how recent the tax debt is (among other factors). Student loans can be discharged under certain very limited circumstances, but it generally requires evidence that you will NEVER be in a position to pay them and in most cases still requires some payment on the debt before the rest is discharged. If these are important issues in your decision to file for bankruptcy, you would be foolish to move forward without retaining an attorney.

Most student loans are exempt from the discharge including criminal fines and restitution, and some back taxes. In order to determine what is and is not dischargeable, a bankruptcy lawyer would have to analyze the type of debt involved, whether there are other defenses to the debt, such as statute of limitations; and in the case of court ordered restitution, if its not criminal restitution or a criminal fine, it may be dischargeable. Moreover, back taxes that are more than three years old, on reported returns, are generally discharged. However, as I said it depends. Click on "Find a Lawyer" above and locate an attorney in your area who handles bankruptcy cases and set up a consultation. Bring all of your paperwork with you, and be as thorough as possible.

While there are debts that cannot be discharged in bankruptcy it is important for you to understand that you are still required to list ALL your debts in your papers. You will be signing under penalty of perjury that you have listed everyone to whom you owe money.

See section 523 of the bankruptcy code. That section lists all debts that are non-dischargeable in bankruptcy. As to your specific list, (1) student loans are non-dischargeable unless you file and win an adversary proceeding in your bankruptcy and prove that repaying the loans would cause an undue hardship. (very tough to do, costs a lot of money, and CO is not a friendly district when it comes to student loan discharge). (2) Court ordered restitution is NEVER discharged. (3) Back income taxes have various rules regarding what can and cannot be discharged. See. www.bankruptcytaxdischarge.com. Interest follows the debt. So, if the debt is non-dischargeable, the interest is also non-dischargeable. Tax penalties are a different story. Penalties associated with back taxes are discharged in bankruptcy (but then a discussion needs to be had about whether their is a tax lien etc.). With those sorts of debts, you don't have any semblance of a simple case. Hire an attorney (I happen to handle cases involving taxes and student loans) to assist with your bankruptcy. Just because certain debts may be non-dischargeable doesn't mean you won't benefit from the bankruptcy. You want to find an attorney that will find the right option for your circumstances and understands the unique challenges presented by your situation.