Which Debts Aren’t Discharged in Bankruptcy?

How to Reduce Debt in JacksonvilleThe primary reason people file for bankruptcy is to get rid of their debt and have a fresh start. But while many of your debts will be discharged in bankruptcy, some debts may remain after filing. Read on to learn more about how to reduce debt by filing for bankruptcy.

Debts Not Discharged with Chapter 7

When you file Chapter 7 bankruptcy, many of your debt will be discharged. There are some debts, however, that will not be wiped out. Some of these debts may be subject to denial or successfully objected by the creditor. Others are never dischargeable, meaning that they fall under a predetermined list of non-dischargeable debts. These include:

  • Certain taxes
  • Unscheduled debts which were not listed on the original bankruptcy petition
  • Spousal support
  • Child support
  • Debts owed to an ex-spouse or child due to divorce or separation
  • Attorney fees towards child custody and child support cases
  • Fines and penalties owed to government agencies
  • Student loans (however there may be exceptions in certain circumstances)
  • Court fines and penalties
  • Certain housing fees such as homeowner’s association fees
  • Debts for tax-advantaged retirement plans
  • Certain debts related to a DUI

Debts Not Discharged with Chapter 13

If you’re wondering how to reduce debt, you might be considering restructuring your finances by filing for Chapter 13. In this case, most of your debts will be discharged when your bankruptcy is complete. Chapter 13 even wipes out certain debts that are non-dischargeable under Chapter 7. There are some debts, however, that do survive Chapter 13.

  • Spousal support
  • Child support
  • Fines and penalties owed to government agencies
  • Debts owed on crimes or restitution
  • Certain taxes, such as recent income tax debts
  • Certain debts related to a DUI
  • Debts incurred by malicious actions that have been brought to civil court
  • Debts that were not listed on your bankruptcy petition
  • Student loans
  • Fraudulent debts due to fraud or theft

Additional Barriers to Discharge

It’s important to understand that the court may deny a Chapter 7 discharge. You must follow the court’s rules and the bankruptcy code. The court may also deny your Chapter 7 petition entirely in some cases, leaving all of your debts remaining. Additionally, any creditor may raise the issue of being discharged and ask the court for a hearing. If the court agrees in the end, that debt may be deemed non-dischargeable.

If you are trying to determine how to reduce debt through bankruptcy, be sure to get sound legal advice. Consult with an experienced bankruptcy attorney who can help you determine which type of bankruptcy you should file. He or she can also advise you about which debts will and won’t be discharged following the completion of your bankruptcy.

For bankruptcy help in Jacksonville, contact the lawyers at Parker and DuFresne. We have decades of experience guiding our clients through their bankruptcy cases. We can determine whether Chapter 7 or Chapter 13 is the right option for your specific circumstances. Call us at (904) 733-7766 today to set up your consultation.