Myth: All my debts are wiped out in my bankruptcy

Is it true all of my debt will be wiped out in my bankruptcy?

The ultimate goal in filing a petition in bankruptcy is to gain a discharge of one's unsecured debt. A petition in bankruptcy, however, does not "wipe out" your secured debt, and, will not discharge certain other unsecured debt exempted from discharge under section 523 of the Code.

Domestic support obligations, including current and past due child support, spousal support and alimony, are not subject to discharge. A debt arising out of a court judgment for personal injuries that occurred under the influence of alcohol or drugs or during the commission of a crime are not subject to discharge. Criminal restitution orders are not subject to discharge. Federally guaranteed student loans are not subject to discharge. Recently incurred income tax obligations are not subject to discharge. Debt incurred as a result of fraud or false pretense is not subject to discharge. Credit card purchases and cash advances made in the 90 day prior to filing are not subject to discharge. There are several more.