FAQs about Nondischargeable Debts in Bankruptcy

October 31, 2015

Bankruptcy can be an effective way to get rid of a lot of debt. Not all debts, however, can be eliminated through bankruptcy, and we’ll reveal more about just what those nondischargeable debts are in the following answers.

Important Answers about Debts that Can’t Be Discharged via Bankruptcy

Q: When is debt nonchargeable in a Chapter 7 bankruptcy case?

Get answers about dischargeable versus nondischargeable debts in Chapter 7 bankruptcy from our Colorado Springs bankruptcy lawyers.

Get answers about dischargeable versus nondischargeable debts in Chapter 7 bankruptcy from our Colorado Springs bankruptcy lawyers.

A: In general, failing to comply with standard bankruptcy procedures or the court’s rules can result in debts being nondischargeable in bankruptcy. In fact, the court may deny a petitioner his request for discharge via bankruptcy if or when that person has (for instance):

  • Failed to provide the necessary tax documents (to verify his income, his payment of taxes, etc.)
  • Failed to complete the credit counseling requirement
  • Lied on his bankruptcy paperwork
  • Violated any court order related to the bankruptcy case.

Q: Are there debts that are never dischargeable in Chapter 7?

A: Yes. Certain debts will never be discharged by a Chapter 7 bankruptcy case, with just some of these nondischargeable debts including:

  • Student loan debts
  • Debts related to spousal support and/or child support payments
  • Debts arising from a personal injury judgment
  • Restitution debts (associated with criminal cases)
  • Debts related to fines owed to government entities.

Additionally, certain types of tax debts may also not be discharged via a Chapter 7 case.

Q: So what debts can Chapter 7 discharge?

A: Credit card debt, medical bill-related debt and mortgage debt are some of the major debts that can be wiped away with a Chapter 7 bankruptcy case.

Various other types of debts can be eliminated with bankruptcy, as well, so it’s important to consult with an experienced lawyer to find out more about how bankruptcy may resolve or impact your debt situation.

Q: Should I bother with Chapter 7 bankruptcy if I have a lot of nondischargeable debts?

A: Possibly – the answer to this will depend on the specifics of your situation, and an experienced lawyer can provide you with the best advice.

That being stated, however, if you have a lot of nondischargedable debt, as well as a significant amount of debt that can be discharged, then, yes, Chapter 7 bankruptcy will still likely benefit you.

This is because, by eliminating a good portion of your dischargeable debt, you may be able to free up enough money to start tackling the nondischargeable debt, putting you on the path to a better financial future.

Colorado Springs Bankruptcy Lawyers at the Law Office of Jon B. Clarke, P.C.

Are you struggling with debt and ready for a financial fresh start? If so, it’s time to contact the trusted Colorado Springs bankruptcy lawyers at the Law Office of Jon B. Clarke, P.C.

To find out more about your best debt relief options, as well as how we can help you obtain the financial fresh start you need and deserve, call (303) 779-0600 or email us using the contact form on this page. We also encourage you to complete our Business or Consumer Debtor Analysis Form so that we can provide you with professional advice that is as specific and helpful as possible.

From our offices based in Denver and Greenwood Village, we provide people throughout Colorado with the highest quality debt relief legal services.

Categories: Bankruptcy, Debt