Non-dischargeable Debts
Dischargeable debts are those debts that can be discharged through bankruptcy proceedings. Certain debts cannot be discharged through a bankruptcy proceeding. In a Chapter 7 bankruptcy, nondischargeable debts cannot be discharged at all, and in a Chapter 13 bankruptcy, these debts remain even after the repayment plan is completed.
Nondischargeable Debts
The following claims are generally found to be nondischargeable:
* Alimony, child support, and any debts in the nature of support
* Student loans, unless repayment would cause undue hardship
* Court-ordered restitution owed to either a court or a victim
* Debts not listed on the bankruptcy petition
* Some property settlements
* Certain fines or penalties
* Debts incurred from driving under the influence of alcohol or drugs
* Most federal, state, and local taxes and any money borrowed on a credit card to pay those taxes
* Fees imposed by a court for the filing of a case, motion, complaint, appeal, or for other costs and expenses assessed with such filing
* Debts that could not be discharged in a prior bankruptcy that was dismissed due to fraud or misfeasance
* Debts for purchases of more than $ 1,225 in luxury goods or services or cash advances within 60 days of filing for bankruptcy
* Credit card purchases made within 60 days of filing for Chapter 7 bankruptcy.
Adversary Proceeding to Get Nondischargeable Debts Discharged
To get any of the above debts discharged, a debtor needs to file a Complaint to Determine Dischargeability of a Debt with the bankruptcy court and must show, in court, that the debt is not covered by the general rules that state these debts are not dischargeable. This is considered an adversary proceeding.
Dischargeable Debts Unless Objected to by Creditor
The following four categories of debts are discharged unless a creditor objects to dischargeability:
* Debts incurred on the basis of fraudulent acts
* Debts from willful or malicious injury to another or another’s property, including assault, battery, false imprisonment, libel, and slander
* Debts from larceny, breach of trust, or embezzlement
* Debts arising out of a marital settlement agreement or divorce decree that are not otherwise automatically nondischargeable as support or alimony.
