subject: CC Brown Law – Non-Dischargeable Debts in Bankruptcy [print this page] CC Brown Law Non-Dischargeable Debts in Bankruptcy
People file for bankruptcy in order to get out from under their debts and make a fresh start. Many debts may be eliminated, or discharged, through bankruptcy; however, not all debts can be. Such kind of debts are termed as non-dischargeable debts, which means that after you file bankruptcy, you will still owe these debts. If you are thinking about filing bankruptcy, then you must be familiarize yourself with what types of debts are considered non-dischargeable,
Marital Debts:
Any debt which is obtained during a divorce or separation can not be discharged by a Chapter 7 Bankruptcy.
Child Support and Alimony:
Neither child support or alimony can be discharged by filing a bankruptcy. People owed domestic support obligation', or DSO's are shielded by the 2005 bankruptcy code. DSO's are any debts which are take in before, on or after the day the bankruptcy is filed and are recoverable or owed to a spouse, former spouse, or child of the bankruptcy petitioner, or a governmental unit.
Taxes:
In chapter 7 bankruptcy, you can not discharge your income tax debt unless the income tax is older than three years, the return was filed on time and and correctly. It is possible for your tax to be dischargeable if you filed late, but more than two years before filing for your bankruptcy. There are some additional considerations that need to be met in order for your tax debt to be discharged.
Student loans:
Only if payments would result in excessive hardship to the debtor, any non-profit, government or any other type educational loan governmental are non-dischargeable.
Citations and Fines:
Any sort of fine for breaking the law are non-dischargeable. This includes traffic tickers and any kind of court-ordered criminal restitution.
Intentional Torts:
Any debt that is a result of a malicious or willful act can not be discharged. Debts incurred through fraud or intentional tort can be discharged. It is possible that your creditor will file a notion with the courts to attempt to have the debt declared as valid.
Fraud:
Any debt you incur as a result of involution in a fraudulent act are non-dischargeable.
Driving While Intoxicated:
Any sort of debt which is results from an injury or death while driving while intoxicated is not dischargeable.
Recent Credit Purchases/Cash Advances:
Debt that is owed to one creditor for the luxury goods or services are not dischargeable if they total more than $500, incurred within 90 days of filing Bankruptcy or are payday loans greater than $750 and were obtained within 70 days.
Before you make a firm decision about filing Bankruptcy, you should analyze all your options and all the possible outcomes of such options. Find which debts can be dischargeable and if that amount is large enough for you to use your one get-out-of-jail-free card for the next decade. More than anything, be realistic about what may or may not happen and decide if that is a gamble that you are willing to take. Knowing all that you can about filing bankruptcy and consulting with a skilled bankruptcy attorney will help you to make an informed decision that will be more likely to go your way.
