Despite Filing Bankruptcy, Some Debts Must Be Paid
Although filing for bankruptcy will remove much of your unsecured debt, there are still several types of debt that cannot be eliminated. Rules regarding bankruptcy specifically identify the following items as exempt from release per Section 523(a) of the Bankruptcy Code.
If you have filed a Chapter 7 bankruptcy, the following debts still must be paid:
Alimony or child support
Certain tax debts
Student/College loans
Luxury items worth more than $500 purchased within 90 days of filing bankruptcy
Government fines
Cash advances above $750 made within 70 days of filing bankruptcy
Debts that are deemed fraudulent
Damages that result from the malicious or willful injury of another
Condominium or home owner’s association fees
Personal injury or death from the operation of a vessel, vehicle, or aircraft
In some cases, debts that are not listed on your schedules
Debts that result from fraud or maliciousness are not automatically exempt from a bankruptcy discharge. The creditor must first act and request the court to prevent the discharge of this specific type of debt. If no action is taken by the creditor, then the debt will be released.
In a Chapter 13 bankruptcy, you cannot eliminate:
Student loans
Government fines
Child support or alimony payments
Drunk driving judgments
Certain tax debt
Debts that result from restitution or fine from a criminal case
One type of debt that might be possible to eliminate from a Chapter 13 bankruptcy is a debt that results from wrongdoing or fraud that is deemed intentional. In this case, the creditor must file and prevail in an action and request to have the debts ruled non dischargeable. If the creditor does not, then the debtor will receive the discharge of debt.
Tagged with: bankrupt • Bankruptcy • Bankruptcy Attorney • Chapter 7 • Law • Lawyer • legal • tucson bankruptcy
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