|
Q.Can all types of debt be discharged In Bankruptcy?
A.No. Some debts are not dischargeable. In other words, even if you file bankruptcy some of the debts you may have acquired will not be "discharged"-- you will still owe the entire amount of nondischargeable debt in full. Although the types of non-dischargeable debts vary depending on whether you file a Chapter 7 or Chapter 13 bankruptcy, generally, the following debts cannot be discharged:
- Debts not listed in a bankruptcy filing;
- Debts incurred after a bankruptcy filing;
- Student loans unless repayment is deemed by the court to cause undue hardship;
- Most federal, state and local taxes;
- Debts for death or personal injury caused to a third person resulting from driving under the influence of drugs or alcohol;
- Debts owed to a spouse, former spouse, or child for alimony, maintenance, or support arising out of a separation agreement, divorce, or other court order; and
- Fines or restitution debts ordered by a criminal court to be paid to a victim.
The following debts are dischargeable unless the creditor to whom the debt is owed files an objection with the bankruptcy court):
- Debt incurred as a result of a fraudulent act (e.g. lying on a loan application);
- Debt incurred as a result of a breach of fiduciary duty, embezzlement, or larceny;
- Debts for willful or malicious injury to another individual or their property; and
- Debts arising out of a marital settlement agreement or divorce decree.
|
|
