What debts will not be discharged if I declare bankruptcy?
Chapter 7 bankruptcy can offer much needed relief from overwhelming and crushing debt for many Americans. While declaring Chapter 7 bankruptcy could erase a tremendous amount of debt, there are certain debts that will not be discharged even after bankruptcy. It is important that you have a full understanding of what Chapter 7 bankruptcy can and cannot do to reduce your debt. Our Ohio bankruptcy attorneys at Miami Valley Bankruptcy offer a look at what types of debts will not be discharged in Chapter 7 bankruptcy. Contact our experienced bankruptcy attorneys today for an individualized assessment as to whether bankruptcy could benefit you.
Certain categories of debt cannot be discharged unless the filer can demonstrate extraordinary circumstances. The following debts are generally not subject to discharge:
- Student loans
- Certain tax debts
- Debts for alimony or child support
- Debts to government agencies
- Court fines and penalties
- Attorney’s fees stemming from child support or custody cases
- Personal injury related debts
- Debts owed to a former spouse or child
- Secured loans
- Some condominium dues
While exceptions exist, discharging any of these types of debts will typically be an uphill battle. In addition to these types of nondischargeable debts, debts that are not listed in your asset case will not generally be discharged. You will need to carefully list of all of your debts when you file for bankruptcy, as omitted debts could remain after the conclusion of your bankruptcy case.
If you have a considerable amount of secured debt or another types of debt that cannot be discharged in a Chapter 7 bankruptcy, you may wish to consider a Chapter 13 bankruptcy. With this form of bankruptcy, you can enter into a payment plan that could allow you to pay off secured debts like a mortgage or car payment and still keep your property. Potential bankruptcy filers are advised to meet with a bankruptcy attorney for a careful review of their options.