When Filing For A Chapter 7 Bankruptcy, Which Debts Are Non-Dischargeable?

Freedom from debt is a financial dream shared by most people. However, freedom from an insurmountable debt is another thing. When people experience the latter, they feel buried and powerless on their finances. To many people, the only solution seems to be filing for bankruptcy. And yes, it does help you regain control of your life. But contrary to popular belief, bankruptcy does not wipe out all forms of debt. It is very important that you consider this before move forward with your bankruptcy case, whether it is Chapter 7 or Chapter 13. A qualified bankruptcy attorney can answer all of your questions but here is the lowdown on non-dischargeable in a Chapter 7 bankruptcy.

The debts listed below are those that must be repaid if you file for Chapter 7 bankruptcy. In the case of Chapter 13, the debts must be fully repaid under the plan you develop for your bankruptcy repayment. If you are able to demonstrate that paying on certain student loans would constitute a serious hardship for you, you may be able to discharge these loans. If you want to keep secured property, such as a house or a car, any debt on them must also be paid. To learn more about that and the entire process, speak to an attorney. Additionally, you cannot discharge any of the following debts:

• Owed child support and alimony: This includes back child support and other amounts related to supporting a family that have previously been ordered. • Debts for personal injury or death cases that resulted from an accident where drunk driving was involved. • Violations and fines from traffic and criminal violations. • Income tax debts from the last three years and any other outstanding tax debts. • Debts that you fail to include in your bankruptcy papers, unless the creditor becomes aware of the bankruptcy case.

The bankruptcy judge also has some say over what can and cannot be discharged. A judge can deny your request to do so if a creditor comes forward to challenge your request to discharge certain debts. These include:

• Debts that were incurred as a result of fraud • Credit purchases of $1,150 or more for any luxury services or goods that were made within sixty days of your bankruptcy filing. • Debts that accumulated as a result of malicious injury to another person or another individual's property. • Debts that resulted from larceny, breach of trust, or embezzlement.

A bankruptcy attorney can help you walk through the process of filing and will be able to inform you about what to expect.

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