Debts that are Not Discharged in Chapter 7 Bankruptcy
Contrary to popular belief, every type of debt is not erased through a chapter 7 filing. These debts that will not be erased are known as "non-dischargeable." If you have non-dischargeable debts, then you will still be obligated to fulfill that debt after your Chapter 7 has been completed. The following are some of the types of debt that are considered non-dischargeable. Student Loans or loans for an "education benefit" will not be discharged through a Chapter 7 filing. The only exception to this is if you can show that the loans cause you an "undue hardship." For more information on student loans in bankruptcy go to http://www.bankruptcyhome.com/studentloans.htm. Child support and alimony cannot be discharged through bankruptcy. Taxes are generally non-dischargeable, but they can be discharged if they meet the following criteria. For the taxes to be dischargeable they must be income taxes, must be over three tax years old, they must have been filed timely (before April 15th unless extension was given), and the taxes filed must be completely accurate. It is still possible to discharge late filed taxes, but the returns must have be filed more than 2 years prior to the bankruptcy while meeting all the criteria listed above as well. Divorce debts or any debt that was created by a divorce decree cannot be discharged through a Chapter 7. Under the reformed bankruptcy code, any debt awarded by a divorce decree cannot be included in a bankruptcy, regardless of whether or not the former spouse objects to its inclusion. Court ordered restitution is non-dischargeable and includes any money owed to a court or to a victim that resulted from a criminal proceeding. Court fees are also considered non-dischargeable. Debts incurred through fraud, theft, larceny, or embezzlement will not be discharged as long as the creditor in question objects to the dischargeability of the debt. Claims arising from intentional tort cases will not be discharged. Most of these claims would arise from assault and battery cases. Debts that have been included in previous bankruptcies but were found to be fraudulent are not discharged either in a Chapter 7 bankruptcy. There could be other non-dischargeable debts as well as exceptions to the ones already mentioned. For this reason it would be wise to speak with an experienced bankruptcy attorney. He or She would be able to discuss your debts and determine which chapter filing could best give you the relief you seek. While these debts are not dischargeable they can still be paid through a chapter 13 bankruptcy plan. This could offer a more feasible repayment plan or at the very least halt the debt collection attempts. For more information on other options that might be available to you visit http://www.bankruptcyhome.com/filing-bankruptcy.htm
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