Limits to Bankruptcy Protection
As the U.S. Supreme Court has often observed, the purpose of federal bankruptcy law is to provide the honest debtor a fresh start. Bankruptcy laws accomplish this by stopping most all creditor activity and facilitating the discharge of certain kinds of debt. However, bankruptcy law does not necessarily free the petitioning individual from all obligations in all circumstances. Even under a successful bankruptcy proceeding, you may have to continue making certain payments, depending on the outcome you desire and the kinds of debts at issue.
Car and House payments
Unless you decide to give up or “abandon” the collateral, you must continue making current payments on loans secured by your house and car. Otherwise, the lenders can obtain court authority to regain their rights to foreclose or repossess.
Debt
Most of your tax debt (if you have any) will not be discharged in a bankruptcy proceeding. If your debt arose from an accident or a crime, it may not be discharged either. Nor will most debt owing for child support.