If you’ve got a great deal of credit card debt, collection agency accounts, medical bills, personal loans and car accident claims, there is a good chance that all of it can be discharged with Chapter 7 bankruptcy. However, not all debt can be wiped out. Before you file, it’s important to be aware of what debts cannot be discharged by bankruptcy.
Debts That Aren’t Usually Discharged
Below is a list of debts that cannot typically be discharged:
- Debts incurred after you file bankruptcy
- Secured loans that you have stopped making payments on
- Spousal support or child payments
- Income debt taxes that go back three years, as well as other types of tax debt
- Fines and penalties that resulted from violations of the law, such as speeding tickets and criminal restitution
- Student loans, unless you are able to successfully prove that repaying them would create undue hardship for you
- Retirement plan loans
- Some condominium dues and fees
- Debts incurred via fraud, larceny, embezzlement, or similar breaches of trust
- Debts you didn’t list in your asset case
- Certain property taxes
- Taxes withheld from employee wages
- Debts for willful and malicious injury
- Money owed as a result of wrongful death or personal injury
Under Chapter 13, your debt is reorganized and not discharged. Instead of having your debt disappear, you instead enter into a repayment plan to pay back a portion of your debts, including student loans and other non-dischargeable debt.
Are you facing overwhelming debt? Whether you are considering bankruptcy or other options to settle your debts, our Southern California bankruptcy attorneys at Wadhwani & Shanfeld can help. We understand the strain you face as you seek financial options. Our firm can provide the legal knowledge and guidance you need to start over.Call (800) 996-9932 or contact us online for a free consultation. We have office locations in Sherman Oaks, Long Beach, Los Angeles, Lancaster, and Ontario.