Bankruptcy may be a "fresh start" but it may not leave the debtor completely debt free. Certain types of debts survive Chapter 13 bankruptcy and are not discharged.
As a rule, the discharge releases the debtor from all debts provided for by the plan or disallowed, with the exception of certain debts. To the extent that they are not fully paid under the Chapter 13 plan, the debtor will still be responsible for these debts after the bankruptcy case has concluded.
Debts not discharged in Chapter 13 include the following:
Home Mortgages. Such long-term obligations often extend beyond the term of the plan and are therefore not dischargeable.
Taxes. Taxes, including some state taxes, more than three-years-old are not dischargeable
Fraudulently incurred debt. Obligations obtained by false pretenses, a false representation, actual fraud or the intentional provision of false or incomplete financial information respecting the debtor or an insider on which the creditor relied are non-dischargeable
Unscheduled debts. Unscheduled debts, or debts not disclosed in the debtor's petition, are non-dischargeable unless the creditor had knowledge of the debtor's bankruptcy.
Spousal support and child support. Obligations for alimony, maintenance or support pursuant to a separation agreement, divorce decree or property settlement agreement are included in the exception.
Student loans. Educational loans guaranteed by the United States government are generally not discharged.
Other obligations. Drunken driving liabilities, criminal fines and restitution obligations are non-dischargeable.
At Harold Shepley & Associates, LLC, we believe bankruptcy is a last resort to debt relief. Our bankruptcy lawyers can help you decide if bankruptcy is right for you.
Posted in Bankruptcy, Chapter 13, Debt
Tagged chapter 13 bankruptcy, debt, Pennsylvania bankruptcy attorneys