Debts Not Discharged in Bankruptcy

There are certain debts that are never discharged in a bankruptcy.

These means that whether if you file for a Chapter 7 or Chapter 13 bankruptcy you will still have to pay these debts.
These debts are:

  • fines, penalties, and restitution as a result of breaking the law.
  • Certain income tax debts, and
  • debts arising out of someone’s death or injury as a result of your intoxicated driving.
  • child support and alimony.
  • Student Loan Debt

Also note that if you file a Chapter 7 Bankruptcy you will continue to owe condo, coop, and HOA fees; debts for loans from a retirement plan; and debts you couldn’t discharge under a previous bankruptcy that are still outstanding.

It is possible to avoid paying some of these debts if you qualify for an exception. For example., you may avoid paying federal incomes under certain circumstances.

If you have any of the debts listed above, we recommend that you consult with an attorney to get further advice on whether they may still be dischargeable.

In addition, if a creditor successfully objects that one of your debts should not be wiped out, you will also have to pay that debt. The court will have to rule on the creditor’s argument, and if you find yourself in this situation, we recommend that you be represented aby an attorney.  Examples of debt that are creditor may be successfully in arguing that the debt should not be wiped out include:

  • debts arising from actual fraud
  • debts for luxuries of more than $725 purchased within 90 days of filing or cash advances of more than $1,000 taken within 70 days of filing
  • debts arising from willful and malicious acts
  • debts arising from embezzlement, larceny, or breach of fiduciary duty, and debts or creditors you don’t list on your bankruptcy petition.