Which debts cannot be eliminated by bankruptcy?
Understanding if a debt is not eliminated
through a bankruptcy filing is extremely important. While most obligations can be discharged through a bankruptcy filing, the Bankruptcy Code contains a small list of financial obligations that cannot always be discharged or have limitations on discharge.
Debts that cannot be discharged
Accidents from drug or alcohol
influence while operating motorized vehicle resulting in death or bodily injury cannot be cleared. Conviction of an actual DUI/OVI is not necessary for this to be an issue in your bankruptcy.
is outlined under several provisions in the Bankruptcy Code. A person cannot eliminate debts if the credit was obtained through some sort of fraud.
Domestic support obligations
can never obtain a discharge. This includes any items deemed as such, including child support and spousal support.
Willful & malicious injury
debts cannot be eliminated. This means any monies owned from the willful and malicious injury of another person or the property of another person, and includes such things as an intentional assault and battery where the goal was to purposely harm another person.
Any criminal restitution
under Title 18 cannot be discharged through the filing of a bankruptcy case.
Government Fines & Penalties
cannot be avoided with a bankruptcy, like most other obligations to a government entity. One example would be a speeding ticket.
from previous bankruptcies cannot be discharged with a new filing. This does not apply to contractual obligations outside of a prior bankruptcy filing that attempt to make a debt not dischargeable in bankruptcy.
Litigation and court costs
incurred by a prisoner for the filing of a case, motion, a complaint or appeal are not eligible for discharge.
Debts with bankruptcy discharge limitations
, contrary to popular belief, can be discharged in bankruptcy if you can meet the very difficult burden of proving that repayment would cause an undue hardship.
In many cases taxes
can be discharged through bankruptcy. To be eliminated in bankruptcy the tax return must be deemed filed by the taxing authority, the taxes cannot have been due or assessed within 2 years prior to filing for bankruptcy, and no fraud can be related to the taxes in question.
If luxury goods
are financed within 90 days of filing for bankruptcy the obligation cannot be discharged. This issue can be prevented by ensuring that a bankruptcy is filed outside of this 90 day window.
Cash advances and payday loans
can obtain a discharge, but a bankruptcy must be filed outside of 70 days from the day the last advance/loan was received if the aggregate of all such advances/loans exceed $750. If the aggregate is under $750 there is no wait to receive a discharge on the cash advances or payday loans.
A Bankruptcy Attorney-Lawyer Can Help
A bankruptcy attorney or lawyer
from our law firm can help ensure that the automatic stay is properly applied to your case. Our bankruptcy attorneys and lawyers can ensure that all creditors honor the automatic stay. We will navigate the bankruptcy process with you. Our goal is to ensure that you receive your bankruptcy discharge. Once the discharge is received, we can help you enforce to protection against creditors that are not honoring it.
Bankruptcy is a very complex area of law. Do not leave such an important matter in your life in the hands of an attorney that does not have the experience needed to do the job right. Our attorneys have the experience and reputation necessary to properly handle your case. Call today for your free telephone consultation to determine how the law firm of Barr, Jones & Associates can help you get back on the road to a financial fresh start.