It may seem odd that some debts are exempt from a bankruptcy proceeding but that is certainly the case. Thus no matter what happens in the bankruptcy process, you will still be liable to pay off these debts under all circumstances. This article will detail what type of debts are exempt according to the latest bankruptcy laws.

Many people are concerned about maintenance payments and child support. For anyone that has a court order requiring them to pay these amounts then bankruptcy will not exempt you from paying any outstanding money. Thus any debts that have been accrued in supporting these awards are not covered should you file for bankruptcy. All of the law chapters are included in this, including the personal chapter 7 and chapter 13. A lot of people think that filing for bankruptcy will absolve them (or at least protect them) from this debt. However the laws mean that they will have to find this money in full.

Another instance of a debt exempt from bankruptcy is IRS liens. If you have been subject to a tax audit that has led to you having to pay more taxes, then the IRS may put a lien on your home or take a portion of your wages. Unfortunately this can often be a substantial amount of money that you will have to owe the government and no bankruptcy law can protect you from it.

Whilst covering the government, it should also be noted that any government loans are generally considered to be exempt from bankruptcy. Remember that this applies to student loans that are covered by the government too and are a common form of finance for young people.

And the last important debt that is exempt from bankruptcy is any court orders that are handed down to you to pay a sum of money to a creditor before the bankruptcy process was ever instigated.

These are some of the reasons why you should understand the full consequences of filing for bankruptcy. For instance, you may have a number of debts that can never be cleared by the courts. After all you don't want to have a low credit rating, the stigma of filing for bankruptcy and still owe a huge amount of money to people.

Before going down this route you should conduct a thorough audit of your finances. You should qualify all your outgoings and your current monthly income. If any of the outgoings are any of the above them you may want to reconsider filing for bankruptcy.

Another thing is to determine if there are any court judgments held on your name. This should be known as it is part of the law to notify the defendant in any litigation proceedings. Again you are not protected against these should you file for bankruptcy.