There is a range of different bankruptcy types and there is a big difference in the types of debts that are discharged under each type. When a business files for bankruptcy they are going to be dealing mainly with the expenses directly associated with the business. This means that the student loan you took out to go back to cosmetology school is not going to be something that can be discharged when a business files for bankruptcy.
When filing for this type of proceeding you’re able to discharge a great deal of debt as an individual if you are filing for yourself and as a business for those that are filing on behalf of a business that they own. For individuals, you can discharge credit card debt, personal loans, car loans (while returning the car of course), mortgages, and other personal consumer debt that you have racked up.
When it comes to a business, in most cases you are required to sell off as much as possible to help settle the debt before the rest can be forgiven. There are certain types of debt that cannot be discharged for anyone under any circumstances. You cannot discharge student loans, recent taxes both local and federal, debts for personal injury caused while the debtor is intoxicated and driving a motor vehicle, debt incurred through frauds, criminal restitution, child support, alimony, parking tickets, and fines.
On top of those that are listed above, you are also not able to discharge on those loans and debts that are not listed in the proceeding. This is why legal services and a great bankruptcy attorney are so important when it comes to your bankruptcy proceedings and making sure that all the right boxes are checked. Making sure that your debts are all clearly outlined, that they are clearly listed and that your bankruptcy is thorough and to the point.