Bankruptcy | The Truth

6)  Not all of your debt is discharged – there are a number of debts that might not be discharged in bankruptcy.  Some of these non-dischargeable debts have exceptions to make them dischargeable, but they are more costly without a guarantee.  For example, taxes, and student loans are normally not dischargeable.  However, they can be discharged if certain conditions are met.  In these situations, your attorney will charge you more.  Additionally, there is still no guarantee that the taxes or student loans will be discharged.

For example, to discharge student loans, your attorney will have to show an “undue hardship.”  This is extremely fact based.  If the bankruptcy court finds that your situation does not present an undue hardship, then the student loan will not be discharged.  This could happen even though you may have paid your attorney additional fees to handle the legal work for the student loan matter.