Filing bankruptcy in Texas may seem like the only answer to your climbing debt problems. In many cases, it is the perfect solution. However, filing Chapter 7 will not solve every problem. In fact, there are some debts you cannot get rid of through bankruptcy and that will stick around. So, before you file, you need to make sure you can discharge the debts you have through the process.
The U.S. Courts explain that when filing Chapter 7, you can discharge most debts, which means clearing them away and no longer having a responsibility to pay them. However, the law does state certain debts are not dischargeable, which means you will still owe them and could face penalties and other collection efforts.
There are certain categories of debts that you cannot get rid of through filing bankruptcy. These include anything you owe to the government or a government entity, such as taxes and student loans. It also includes any debts that result from a court order, such as child support and alimony. This also includes court fees, fines and damages a court has said you must pay due to your own actions or negligence. Beyond these categories, you also may not be able to clear out housing fees for cooperative and condominiums and some tax-advantaged retirement plans.
It is important before you ever file that you go through your debts so you know exactly what they are and how much you owe. If your debts are mostly those that you cannot discharge through bankruptcy, then filing does not make sense. On the other hand, if you have no debts that cannot be cleared or you only have a small amount of non-dischargeable debts, then bankruptcy may be a good choice. This information is for education and is not legal advice.