Generally speaking, you can't file for bankruptcy as a way of discharging debts such as these:

  • Unpaid taxes
  • Student loans
  • Debt incurred from an illegal activity (for example, driving under the influence)

However, there are certain exceptions to these rules. For example, if your taxes have been owed for over 3 years, you filed the returns over 3 years ago, and you meet a few other criteria, then sometimes you can use the bankruptcy process to take care of those unpaid taxes.

Another exception: sometimes you can discharge student loans if your situation involves what they call "undo hardship." This has to be a real undo hardship, though. Many courts have ruled that this rule only applies to someone who is, for instance, physically confined to a wheelchair and is unable to work and, by extension, unable to pay their student loans back.

There are some other exceptions out there, and really the best way to get the information you need about your specific situation is to talk to an experienced bankruptcy attorney. As a seasoned Huntsville area bankruptcy lawyer myself, I encourage you to give my firm a call if you're looking for answers and live in northern Alabama. I offer free consultations, so you have nothing to lose by reaching out.