Unfortunately, bankruptcy doesn't clear all types of debt. There are some types of debts that are by law non-dischargeable in a Chapter 7 case.
Types of Non-Dischargeable Debt
The following is a list of the most common types of debts that are not dischargeable in a Chapter 7 case:
- Most tax debts and debts that were incurred to pay non-dischargeable federal tax debts.
- Debts for obtaining money, property, services, or credits by means of false pretenses, fraud, or a false financial statement, if the creditor files a complaint in the bankruptcy case.
- Debts not listed on the debtor’s Chapter 7 forms, unless the creditor knew of the bankruptcy case in time to file a claim.
- Debts for fraud, embezzlement, or larceny, if the creditor files a complaint in the bankruptcy case.
- Debts for domestic support obligations, which include debts for alimony, maintenance, or support, and certain other divorce-related debts, including property settlement debts.
- Debts for intentional or malicious injury to the person or property of another, if the creditor files a complaint in the bankruptcy case.
- Debts for certain fines or penalties.
- Debts for most educational benefits and student loans, unless a court finds that not discharging the debt would impose an undue hardship on the debtor and his or her dependents.
- Debts for personal injury or death caused by the debtor’s operation of a motor vehicle, vessel, or aircraft while intoxicated.
- Debts that were or could have been listed in a previous bankruptcy case of the debtor in which the debtor did not receive a discharge.
Contact Us Today
The team at Steffens Law Office can guide you through the process of filing for a Chapter 7 bankruptcy and explain if this is the best way to deal with your debt. Call today to schedule a case review.