Debt that Can’t Be Discharged in Bankruptcy

Chapter 7 bankruptcy will wipe out all of your debt. However, there are exceptions. Bankruptcy in most cases will not get rid of the following debt:

Debts resulting from fraud

This includes knowingly giving false information to a credit card company, loan company and other creditors, especially if those creditors reasonably relied on that information to provide you with the loan or credit.

Taxes

In most cases, back taxes are not dischargeable under bankruptcy. The Federal Government will get their taxes. However there are exceptions to this rule. For more information regarding taxes click here.

Government Fines

Like taxes, most government fines and penalties are not dischargeable in bankruptcy.

Debts from Crime

Debts from crimes are not dischargeable. For example, debts incurred by driving under the influence or while intoxicated are not dischargeable.

Secured Debts

Secured debts such as mortgages, car loans and title loans are not dischargeable if you intend on keeping the property. If you intend to surrender the home or car then any deficiency balance owed will be dischargeable.

Harm

Debts resulting from willful and malicious harm are not dischargeable.

Student Loans

Student Loans are not dischargeable in bankruptcy unless there is an undue hardship by repaying the loans. This is extremely difficult to prove. Contact a bankruptcy attorney today to determine whether your Student Loans pose an undue hardship.

Support Payments

Child Support and Alimony are not dischargeable. This includes support arrears.

If you are considering filing bankruptcy, contact bankruptcy attorneys at Tran Bankruptcy Law to determine your dischargeable debts. In many cases, there are exceptions to the rule. Tran Bankruptcy Law provide free evaluations and consultations.