Chapter 7 Bankruptcy: What Debts Are Non-Dischargeable?


Chapter 7 Bankruptcy: What Debts Are Non-Dischargeable?

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As you all may know, filing for chapter 7 bankruptcy protection is often a pretty efficient way to rid yourself of burdensome debt. Don't get me wrong, there are serious ramifications associated with filing bankruptcy - these must be adequately understood and considered prior to filing.

However, as long as you are realistic about your debts and understand which debts may or may not discharged, you will likely obtain the results you were looking for. In the end, bankruptcy almost always provides my clients with the fresh start they so desired. And for me? Happy clients = happy lawyer in my book.

However, in order to achieve these favorable results, it is absolutely necessary to understand which debts cannot be discharged under chapter 7 bankruptcy protection.

Tax Debt: This one is a little tricky, but generally applies to that debt incurred within the last 3 years. For an in-depth discussion of whether tax debt may be discharged, be sure to explore my previous post on dischargeable tax debt.

Criminal Fines and Associated Debts: Fees and non-fee court ordered judgments pertaining to criminal activity cannot be discharged. This includes judgments involving death or personal injury of another and stemming from your own negligence or criminal activity, including those stemming from DUI.

Student Loans: This is a common point of frustration, but in 99.99% of cases I see (disclaimer: I made up that number, but it is in the ball park according to my own experience) student loans cannot be discharged. The technical jargon is that they may only be discharged when payment causes undue hardship to debtor or their dependents. For more information, be sure to visit my previous post on whether private school loans can be discharged.

Fraudulent Debts or Dishonest Activity:

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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Christopher Ariano, Ariano and Associates, PLLC | Attorney Advertising

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