Are There Non-Dischargeable Debts in Bankruptcy?

Posted on August 30, 2019 at 11:30am by
Kansas City Bankruptcy Attorneys

Bankruptcy is an extremely helpful option for people who are suffering from the effects of difficult financial situations and creditor collection actions. By filing for Chapter 7 or Chapter 13 bankruptcy, you can discharge debts while protecting your most important assets. 

Chapter 13 bankruptcy sets up a payment plan to repay your debts while allowing you to keep your property. With Chapter 7 bankruptcy, you discharge your debts and use exemptions to protect your assets

However, there are certain types of debts that are non-dischargeable. If you have non-dischargeable debts, then you should still consider filing for bankruptcy. By discharging your other debts, you can free up funds to pay back your non-dischargeable debts. 

Child Support,  Alimony and Property Settlements in Bankruptcy

You cannot discharge past due child support or alimony. This means that you cannot discharge family/domestic support obligations in Chapter 7, Chapter 13 or Chapter 11 bankruptcy. There are very few exceptions to this rule when it comes to alimony payments. However, one exception is that it is possible in Chapter 13 to discharge Property Settlement obligations from a Domestic Relations Order.  

Debts Incurred from Drunk Driving Damages

You cannot discharge debts that arise from a civil judgment involving bodily injury or death caused by a drunk driving accident. However, this area of bankruptcy can become confusing if you did not receive a conviction for a DUI. You should speak with a bankruptcy attorney if you have more questions about how DUI debts could factor into your case. 

Certain Tax Debts in Bankruptcy

Only certain types of tax debts are dischargeable in bankruptcy. We have information on our website that discusses when you can discharge income tax debts in bankruptcy. Many other types of tax debts are non-dischargeable. We encourage you to speak with a bankruptcy attorney at our firm to determine how tax debts could affect your potential case. 

Fines for Breaking the Law

You may be unable to discharge punitive fines, such as those that arise from breaking the law. It is important to speak with an attorney to discuss how fines could factor into your potential case. There could be other ways an attorney could help reduce the negative financial impact caused by these fines. 

What About Student Loans? 

Contrary to popular belief, you can discharge student loans in bankruptcy under the right circumstances. If you can demonstrate that repaying the loans would impose undue hardship, then you may receive a discharge for the loans. However, the rules for showing undue hardship vary depending on where you file your case. 

Our student loan bankruptcy attorneys can help you determine if you are a good candidate for an undue hardship discharge. 

Call Our Kansas City Bankruptcy Attorneys to Learn More

Our firm is dedicated to helping people understand how bankruptcy can help protect their assets while discharging debts that are causing them serious financial problems. Bankruptcy does not deserve the reputation it receives. It is not about losing your assets, it is about protecting your assets and financial future. 

In our experience, we have found that most people feel relieved after discussing how bankruptcy can help resolve their issues. Call us at (816) 561 1818 to learn more about how we may be able to help