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Debts You Cannot Discharge in Chapter 7 Bankruptcy?
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Posted By Flora Carrillo
Bankruptcy allows people to get rid of their debts and start afresh. Chapter 7 bankruptcy usually involves liquidating. However, there are still certain debts you cannot discharge with bankruptcy. Before you file, it is important to understand what these are.
Once bankruptcy debt is discharged, the creditor cannot force you to pay; if they do, you can take legal action against them. Not all debts can get discharged, and some are very difficult to discharge. Learn about your bankruptcy options with the help of an Ulster County, NY bankruptcy attorney today.
Debts you can never discharge in Chapter 7 bankruptcy
While bankruptcy aims to give you a fresh financial start by ridding you of your debts, it does not remove all the debts. There are certain categories of debt that are not dischargeable in Chapter 7 bankruptcy, so it is important to learn what they are before you file.
Here is a list of all the types of debts you cannot discharge.
- Alimony
- Child support
- Debts you did not list while filing for bankruptcy
- Debts incurred due to causing willful harm to another person. For example, damaging another person’s vehicle on purpose and without a just cause
- Some unpaid taxes
- Debts incurred due to the death or injury of a party caused by your negligence (alcohol consumption or drug intake)
Can you discharge student loans?
Student loans are rather difficult to discharge in bankruptcy in Ulster County, NY. You cannot get rid of this loan unless you prove that paying the monthly dues for this debt is causing undue hardship to yourself or your family. Even then, only some part of your loan may get discharged, not the entire amount.
If a student loan is the only or a major reason to file for bankruptcy, it is recommended to speak with the loan provider first and attempt a negotiation. Explain your situation to them and request another repayment plan that works better for you. You may also ask for lower interest rates.
It is noteworthy that even though you have the right to file for bankruptcy, your creditors also have the right to stop your debts from being discharged. If the court has put an automatic stay on your debts, the creditors may also request the court to remove them. Therefore, a bankruptcy case does not go as smoothly as you may think.
Living with debts of hundreds of thousands of dollars can take peace away from your life. You do not want to lie in your bed, awake all night, trying to think of a solution. Contact an attorney today and explore your legal options.
