Both Chapter 7 Bankruptcy and Chapter 13 Bankruptcy prohibit discharge of the following debts. Please note that this list is not comprehensive. Also, bankruptcy law regarding debt discharge is extremely complicated and we suggest you contact an experienced bankruptcy attorney in your area to discuss these laws.
- Debts not listed on your bankruptcy papers, whether you chose not to list them or you forgot
- Child support, alimony, and other debts of this nature of support
- Debts for personal injury or death caused by driving while intoxicated or under the influence of drugs
- Student loans, although these may be dismissed if you can prove it would be an undue hardship for you to repay
- Any fines or penalties for violating the law, this includes traffic tickets and criminal restitution
- Most federal, state, and local taxes, and any money borrowed on a credit card in order to pay those taxes.
- Any debts you could not discharge in a previous bankruptcy that was dismissed due to fraud or misfeance.
If you file for Chapter 7 Bankruptcy, you will still be held responsible for repaying these debts after your discharge. Under Chapter 13 Bankruptcy, these debts must be paid in full in your plan, or the balance will still remain at the end of your plan.
A bankruptcy judge may declare the following debts non-dischargeable in Chapter 7 bankruptcy cases if a creditor challenges your request to discharge them:
- Debts you incurred based on fraudulent acts
- Credit purchases in excess of $1,150 taken within 60 days of filing
- Loans or cash advances in excess of $1,150 taken within 60 days of filing
- Debts incurred as a result of willful or malicious injury to another person or another person's property
- Debts from embezzlement, larceny, or breach of trust
- Debts owed under a divorce decree or marital settlement agreement, unless you would still not be able to pay them after bankruptcy or the benefit of having these discharged is found to outweigh the detriment to your ex-spouse.
For more information about bankruptcy and non-dischargeable debts, contact a Bankruptcy Lawyer in Your area.