Q.In a Chapter 7 bankruptcy, what debts are NOT dischargeable?
A.In most states, the following debts cannot be discharged in a Chapter 7 bankruptcy:
- State and federal taxes owed;
- Back child support and alimony, and certain other debts related to a divorce or marital property settlement;
- Criminal fines or penalties;
- Student loans that became due within the last 7 years, unless a court finds that not discharging the debt would impose an undue hardship on the debtor and his or her dependents;
- Monies owed as a result of a judgment or settlement involving: (a) intentional or malicious injury to another person or property; (b) the death or personal injury of another caused by the petitionerís use of a vehicle while intoxicated; and (c) fraud, embezzlement, or larceny;
- Debts incurred for luxury goods or services and cash advances made within the 60 day period before the bankruptcy petition was filed; and
- Debts omitted on the petitionerís chapter 7 forms, unless the creditor knew of the case in time to file a claim.
For some of the above debts to be non-dischargeable, the creditor must file a claim with the bankruptcy court. If a debt is non-dischargeable, the petitioner will be required to repay the non-discharged debt.