Debts Which Cannot Be Discharged in Bankruptcy

BankruptcyWhen you have you back against the wall due to numerous debts it is high time to think of bankruptcy discharge which is provided by several types of lawsuits. There are many reasons which can lead to such inevitable step for those who are overwhelmed with their financial situation. You may need to have a fresh start. The main idea of discharged debt is to provide debtor with a chance to cope with such tough situation as well as meet creditor’s interests.

On the other hand it does not mean that you will not be obliged to pay at all. You should always keep in mind that you are still obliged to proceed with necessary payments and not all your debts will be eliminated. You will need to cover expenses for establishing of reorganizing plan. At the same time there are some types of debts which can’t be discharged. So you should be well-prepared before initiating your bankruptcy case.

What Does Discharge in Bankruptcy Mean?

There are two main types of bankruptcy discharge. They are Chapter 7 and 13. The first one means liquidation of your debts while the second one is mostly used for debt readjustment. It means that you will be no longer responsible for your payments. At the same time creditors will not have a chance demand or collect necessary payments from you.

Debts Which Can’t Be Discharged

There is a list of debts which can’t be discharged. There are 21 of them in accordance with the Bankruptcy Code. We have divided them according to both Chapters 7 and 13.

No-Discharged Debts (Chapter 7):

  • taxes;
  • child support;
  • student loans;
  • alimony;
  • debts that resulted in providing false information or any other kind of fraud;
  • debts resulted in the fact that you were not able to pay them out as per schedule;
  • debts resulted in malicious injuries and willful;
  • debts resulted in fines and other kinds of governmental penalties;
  • corporative assessments and condominium fees.

No-Discharged Debts (Chapter 13):

  • child support;
  • student loans;
  • alimony;
  • restitutions, penalties an fines;
  • particular taxes;
  • debts that resulted in providing false information or any other kind of fraud;
  • debts resulted in malicious injuries and willful;
  • unscheduled debts;
  • debts which have already been included in your repayment plan in accordance with Chapter 13.

All these factors should be taken into consideration while you are preparing to file for bankruptcy. In such cases these measures are the only solution to financial problems. At the same time you should be able to evaluate your perspectives. That is why you are recommended consulting your bankruptcy lawyer before declaring.

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