For some individuals, filing for Chapter 7 bankruptcy can appear be the only way to end overwhelming financial responsibilities. However, even within the legal protections that bankruptcy can bestow, there are many types of debts. Some of these are referred to as “non-dischargeable”, that is, bankruptcy does not make them go away. The debtor must still pay these obligations.
The types non-dischargeable debt in Chapter 7 bankruptcy were not arbitrarily chosen. They are designated as non-dischargeable because of the nature of the debt, including debts resulting from improper or illegal behavior by the debtor. However, with all things related to bankruptcy, things are not necessarily clear-cut. For some non-dischargeable debt, a creditor must challenge not to have their particular debt erased by the bankruptcy. Examples of this can include certain credit card charges, cash advances, or debts created by fraud or intentional injury to another person. Under some circumstances, even after debts under a Chapter 7 bankruptcy have been discharged creditors can continue to pursue repayment, and the law will support them in their efforts.
There are actually 19 types of non-dischargeable debts in Chapter 7 bankruptcy. The following is an abbreviated list of non-dischargeable debt categories.
- Any unscheduled debts the debtor fails to list on the bankruptcy filing
- certain taxes
- alimony, child or spousal support payments
- divorce or separation-related debts to children or ex-spouses
- government fines or penalties
- student loans
- DUI-related debts for personal injuries caused
- Some retirement plan fees
- Condominium association or cooperative housing fees
- Attorneys’ fees for child support/custody cases
- Criminal restitution penalties and other court-imposed fines
If you are facing problems with debt and are wondering if Chapter 7 bankruptcy is something you should explore, then your first step should be to seek the advice of a knowledgeable bankruptcy attorney. Call Zachary Law Group for a FREE 30-minute case evaluation. We’ll put our experience and unique approach to work on your behalf, to tackle your legal problem and “Zach-It!” So don’t spend any more time worrying about your situation – bring us your questions! Contact us today at 1-855-Zach-law.