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What Debts Cannot Be Discharged With Bankruptcy?

Although bankruptcy can discharge almost any debt, there are certain debts or financial obligations that will not be discharged with a bankruptcy. It is important that debtors understand this, because the choice to file bankruptcy may be based on the idea that certain debts will be forgiven when, in fact, they may not be. Oswalt Law Group in Phoenix can help you understand which debts may not be discharged under your proposed bankruptcy plan and also help you make a plan to deal with all of your debt.

Chapter 7

A Chapter 7 bankruptcy usually discharges your unsecured debts and liquidates your assets to pay your secured creditors. However, you may not discharge the following debts under Chapter 7 bankruptcy:

  • Taxes and liens, except within narrow limits as allowed by the IRS and the bankruptcy court
  • Student loans and interest on student loans
  • Alimony or child support ordered by a court
  • Debts incurred by fraud
  • Debts not listed in the bankruptcy so that creditors were not able to file a proof of claim
  • Debts incurred by embezzlement or larceny
  • Debts incurred as the result of you causing a willful or malicious injury
  • Fines or penalties owed to government agencies
  • Judgments against you in a wrongful death or personal injury lawsuit based on a drunk driving accident
  • Condominium or HOA fees or assessments

Chapter 13 Non-Dischargeable Debts

Chapter 13 bankruptcy allows you to make payments on your debts through a trustee. Almost every type of debt can be handled as part of a Chapter 13 case except:

  • Child support or alimony payments ordered by a judge
  • Student loans and interest on student loans
  • Fines and restitution payable to government agencies or victims of a crime
  • Certain taxes, including those due as a result of a fraudulent return or income tax evasion
  • Debts incurred by fraudulent means, embezzlement or larceny
  • Debts for willful, malicious injury or for personal injury judgments related to a DUI case
  • Debts not included in the Chapter 13 plan
  • Debts that are prohibited by law from being discharged as well as interest on non-dischargeable debts

The Oswalt Law Group in Phoenix can help you take advantage of the benefits of bankruptcy to discharge your debts and begin again with a fresh financial start. For more information, contact Oswalt Law Group for a consultation about the possibility of filing a bankruptcy case.

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