When you emerge from a successful personal bankruptcy case, you typically have discharged or eliminated the majority of your debts. However, it is important to understand that there are a few specific types of debts that are not eligible for discharge, including:
- Taxes. There are certain taxes that cannot be discharged. It is important to confer with us to determine whether your taxes will be discharged.
- Child support. Individuals who are entitled to receive child support or alimony are protected by law. A debtor who is obligated to pay maintenance to their ex-spouse or child support cannot discharge the debt in bankruptcy.
- Student loans. It is difficult, but not impossible, to discharge student loans. The debtor must prove that repaying the student loan debt will impose an “undue hardship” on the debtor in order to have the debt discharged. Proving undue hardship is a difficult burden to meet.
- Debt incurred by fraud. Debts that are incurred under false pretenses or as the result of fraudulent activities are non-dischargeable.
- Criminal fines. A debtor that has been ordered to pay criminal restitution by order of a court cannot discharge the debt. This includes traffic tickets and monetary liability for driving under the influence of drugs or alcohol (including court-ordered compensation to an accident victim).
- Certain credit purchases. A debtor who buys luxury goods or services with a credit card, particularly if the purchases were made within the 90 days preceding the filing, may remain liable to pay for those debts.
It is important to meet with a seasoned bankruptcy attorney to discuss all of your debts and determine if any of them are non-dischargeable.
Please keep in mind that every case is different. If you have questions about filing a personal bankruptcy and what debts can be eliminated in your filing, and would like to schedule a no-cost consultation, please contact our office by completing the form on this website or calling us at (954) 932-5377.