The underlying policy of bankruptcy law is that the honest debtor
who is in debt beyond his/her ability to repay the debt should be
given a fresh start through the discharge of debts in a bankruptcy
proceeding.
Not all debts are dischargeable. Generally speaking, the
following debts will not be discharged:
- Taxes.
- Spousal and Child Support.
- Debts arising out of willful or malicious misconduct.
- liability from driving while intoxicated.
- debts from a prior bankruptcy.
- Student loans.
- Criminal fines and penalties.
Those debts which are secured will be discharged, however, expect
the creditor to take the necessary legal steps to take back the
property. In most cases if the debtor's equity interest in the
property is exempt, the debtor may retain the property by redemption
or reaffirmation.