Can all debts be wiped out in a bankruptcy?

No. Certain debts such as federal, state and local income taxes can be discharged on a limited basis depending on the particular situation. Other taxes such as employee withholding taxes paid by an employer and sales taxes can never be discharged. Other obligations such as child and spousal support and alimony cannot be wiped out in bankruptcy and in fact any arrears must be brought current during a Chapter 13 bankruptcy. Debts incurred by fraud, those that are not listed in the bankruptcy case, those that are for fines or penalties to government units, or restitution to a crime victim or for personal injuries caused to another by operating a vehicle while intoxicated cannot be wiped out. Debts incurred after your bankruptcy is filed or for student loans generally cannot be wiped out in your bankruptcy.

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