Dischargeable Debts and Non-Dischargeable Debts
What Debts Can be Discharged in Bankruptcy?
Answer: It depends.
The following debts are non-dischargeable in both chapter 7 and chapter 13. If you file for chapter 7, these will remain when your case is over. If you file for chapter 13, these debts will have to be paid in full during your plan. If they are not, the balance will remain at the end of your case:
- Child support and alimony
- Debts for personal injury or death caused by your intoxicated driving
- Student loans
- Fines and penalties imposed for violating the law, such as traffic tickets, criminal restitution, and certain tax debts.
In addition, the following debts may be declared non-dischargeable by a bankruptcy judge in chapter 7 if the creditor challenges your request to discharge them. These debts may be discharged in chapter 13. You can include them in your bankruptcy plan, and at the end of your bankruptcy case, the balance may be eliminated:
- Debts you incurred on the basis of fraud, such as lying on a credit application
- Debts from willful or malicious injury to another person or another person’s property
- Debts from embezzlement, larceny or breach of trust
- Debts you owe under a divorce decree or settlement unless after bankruptcy you would still not be able to afford to pay them or the benefit you’d receive by the discharge outweighs any detriment to your ex-spouse (who would have to pay them if you discharge them in bankruptcy).
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– DFW area Bankruptcy Attorney servicing Dallas , Fort Worth, Richardson, Garland, Plano, TX and the surrounding areas. Chapter 7 Bankruptcy Attorney / Chapter 13 Bankruptcy Attorney / Debt Relief Attorney