Do you know what types of debts cannot be discharged under bankruptcy?
The answer you might think is easy, but each bankruptcy case is unique.
Is this article we will discuss the types of debts cannot be discharged under bankruptcy.
This are the topics covered in this bankruptcy post:
Do you know what types of debts cannot be discharged under bankruptcy?
Certain types of debts are NOT discharged in bankruptcy.
Currently there are 19 classes of non-dischargeable debt in the United States.
Creditors are able to collect these classes of debts if you receive a discharge of your consumer debt.
In the case the creditor does not challenge the non-dischargeable debts, those can be discharged.
Though some non-dischargeable debts are not subject to hearing.
These are regularly non-dischargeable debts:
- Alimony or chi support
- Student Loans
- Criminal court fines, penalties or restitutions
- DUI accident debts
- Retirement debt tax-advantage plans
- Many forms of taxes
- Housing fee debts
- Government fines or penalties
- Debts not in your bankruptcy petition
Alimony, maintenance or support for a spouse or children.
Bankruptcy will not discharge court ordered child or spousal support payments.
These debts, including any missed payments are not dischargeable through bankruptcy.
If you owe money to your spouse, you can be exempt in a discharge if you meet these requirements:
- Debt has to be to a former spouse
- The debt must be in connection with a divorce or property settlement agreement
- A debt has to be in related to child support, maintenance or alimony.
Student loans.
Typically, student loans are not dischargeable. However, you can ask the court to discharge the loans if you can prove that paying them is an “undue hardship.”
Money borrowed by fraud or false pretenses.
A creditor may try to prove in court during your bankruptcy case that you lied or defrauded them, so that your debt cannot be discharged.
Income taxes.
Taxes owed to the Internal Revenue Service and in California, the Franchise Tax Board, are generally not discharged in bankruptcy unless the taxes meet specific requirements.
Most criminal fines, penalties and restitution orders.
The exception includes tickets fines.
