The dischargeability of certain debts depends entirely on which chapter the bankruptcy is filed under. If the bankruptcy is a chapter 7 bankruptcy, then there are tighter restrictions on what can and can’t be discharged. Nondischargeable debts in chapter 7 include: most taxes, child support, fines owed to any governmental institution, student loans in most cases, criminal restitution debts, marital property settlement debts, and debts for repayment of loans from pension plans. Chapter 7 as a fresh start is able to completely discharge most forms of unsecured debt excluding the previously mentioned exceptions. Chapter 13 on the other hand is not as restrictive as chapter 7 because in a chapter 13 bankruptcy most of the previously nondischargeable debts should be included within the chapter 13 repayment plan. Nondischargeable debts in chapter 13 include: long-term debts with final payments due after the completion of the plan (e.g. mortgages/vehicle loans), tax debts, debts incurred through fraud, debts that aren't listed in the bankruptcy, child support, drunk driving debts, and most criminal fines and restitution debts.
To better understand if filing for bankruptcy is the right action for you, it is recommended that you set up a consultation with a local bankruptcy attorney.
No comments:
Post a Comment