Debts That Remain After Chapter 7 Bankruptcy
In Credit Repair of CreditGuru (March 31, 2009 10:33 pm)
Before the Tax Code reforms of 2005, the difference in debts discharged between a Chapter 13 Bankruptcy, or Wage Earner Plan, and those discharged by a Chapter 7, or straight Bankruptcy, was significant. Now, however, that difference has been minimized. Not all debts are discharged with a Chapter 7 bankruptcy filing as was once mostly the case. Erie, PA bankruptcy lawyers can advise you on which of your debts are eligible for discharge.
Although circumstances may vary from filer to filer, the following debts will generally not be discharged:
• Child support and alimony due (including past due amounts)
• Student loans (unless the court has determined that repayment of the debt will cause “undue hardship” to the debtor and his or her dependents).
• Debts created from being found guilty of driving while intoxicated or damages incurred due to an accident cause by drunk driving.
• Other debts not listed in the bankruptcy petition.
• Debts owed creditors not listed in the bankruptcy petition.
• Court fees owed.
• Federal, state and local taxes.
• Restitution, fines and penalties assessed by the government.
• Debts not dischargeable from a previous bankruptcy due to debtor fraud.
During the bankruptcy, creditors will be given the chance to dispute the discharge of some debts. Bankruptcy lawyers from Erie will be at this creditor’s meeting with you to offer guidance and to speak on your behalf.
If creditors protest the proceeding and can prove their claim falls into one of the following categories, these debts will also not be discharged:
• Debts created by willful and malicious actions(such as assaulting someone)
• Debts created by fraud. These categories include balances on credit cards charged up within 90 days of the court filing for luxury goods and services.
• Cash advances more than $750 acquired within 70 days of filing the bankruptcy petition will also not be discharged.
• Debts from a divorce settlement or other court decree which the debtor is able to pay but nonpayment harms the recipient more than it benefits the debtor.
• Debts created from embezzlement, theft or a violation of some trust, or fiduciary duty.
There may be other of your debts that fall in either of these two categories. Contact bankruptcy lawyers from Erie for more information.
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