Which type of debts are not affected by bankruptcy?

Which type of debts are not affected by bankruptcy?

• A. Fines against debtor for criminal action and child support or alimony payments
• B. Mortgage debt
• C. Student loans
• D. Credit card debt

Answer: (A)

Some debts survive bankruptcy: fines imposed for criminal actions and child support or alimony obligations. Fines are penalties to the state and bankruptcy does not wipe them out. Child support and alimony are ongoing support duties to dependents or a former spouse, and courts require these payments to continue regardless of bankruptcy. Most other debts—such as mortgage or other secured debts, credit card debt (unsecured), and student loans—are treated differently in bankruptcy, typically allowing discharge of unsecured debts and requiring continued treatment or special handling for secured debts, while student loans usually aren’t discharged except in rare hardship cases. So, the debts that are not affected by bankruptcy are the fines and the family support obligations.

Some debts survive bankruptcy: fines imposed for criminal actions and child support or alimony obligations. Fines are penalties to the state and bankruptcy does not wipe them out. Child support and alimony are ongoing support duties to dependents or a former spouse, and courts require these payments to continue regardless of bankruptcy. Most other debts—such as mortgage or other secured debts, credit card debt (unsecured), and student loans—are treated differently in bankruptcy, typically allowing discharge of unsecured debts and requiring continued treatment or special handling for secured debts, while student loans usually aren’t discharged except in rare hardship cases. So, the debts that are not affected by bankruptcy are the fines and the family support obligations.