Saturday

What's not protected in a bankruptcy?

Under the new bankruptcy law many protections have been eliminated. Most taxes that you owe, some credit card debt and student loans, are not covered by the new law. And if they are covered, the new bankruptcy law makes it harder to qualify.

For example, filing for bankruptcy no longer delays or stops eviction actions, driver's license suspensions, legal actions for child support, or divorce proceedings. Child support and alimony take priority over any other creditor.

Child support and alimony obligations will survive your bankruptcy -- you will continue to owe these debts in full, just as if you had never filed for bankruptcy. In addition, some types of debts cannot be claimed if your creditor convinces a judge that they should survive your bankruptcy.