Not all debt is created equal. While Chapter 7 bankruptcy does clear most or all of your debt, there are some debts that are nondischargeable, meaning they cannot be wiped. If you owe any nondischargeable debts, and you file for bankruptcy, you still owe these debts. If you file for Chapter 13 bankruptcy, you still owe any portion of these debts you can't pay in full through your repayment plan.
The following are not usually discharged in bankruptcy:
- Most student loans
- Secured debts
- Recent federal, state, and local taxes
- Child support and alimony
- Government-imposed fines and penalties, as well as court fees
- Debts from personal injury or wrongful death damages to others from driving under the influence
- Pension plan debt
- Condominium dues and fees
- Income tax liability
While most student loans are not dischargeable, they can be made dischargeable if the court finds that paying off the loan would impose undue hardship on the debtor and their dependents. In order to qualify for a hardship discharge, you must show that you cannot make payments. Courts look at income, duration and good faith to determine eligibility.
Aside from those mentioned above, debts may not be discharged if a creditor can prove that it stems from fraud, willful and malicious acts, embezzlement, larceny, or a divorce settlement agreement or court decree.
Contact McDonald Law Offices, PLLC Today!
Bankruptcy may sound scary, but it can help you get out of a dire situation. At McDonald Law Offices, PLLC, our Henderson bankruptcy lawyers have the experience and knowledge to successfully tackle even the most complex bankruptcy cases. Let us guide you through this tough process and get you the results you need and deserve. We can help you discharge credit card debt, medical bills, personal loans and obligations under leases and contracts.
Call (702) 850-8004 or contact us online for more information.