Some Debts Cannot be Discharged Through Bankruptcy

While a Chapter 7 Bankruptcy can discharge (i.e., eliminate) many types of debts, there are 19 categories of debts that Congress has identified as not dischargeable (called "excepted from discharge"). Some of these debts can be discharged under certain circumstances and may also be eligible for a significant reduction under Chapter 13. A complete list of the 19 categories is below:

• Most taxes. In some cases tax debt can be discharged. For instance, if an income tax debt is more than three years old, it may be dischargeable, provided you submitted a timely return for that year. It is important to consult with an experienced Bankruptcy attorney regarding prior taxes, as you may be entitled to signficant relief.

• Debts incurred through false pretenses. This category includes debts for luxury goods or services within 90 days before the Bankruptcy was filed, and cash advances within 70 days before filing.

• Unlisted debts, if the failure to list the debt prevented notice to the creditor and an opportunity to file a claim or object to the discharge of the debt.

• Debts for fraud or embezzlement.

• Most domestic support obligations (including alimony, spousal maintenance or child support).

• Debts for willful and malicious injury caused by the Debtor.

• Government fines and penalties.

• Student loans, unless the debtor can show that repayment of the student loan poses an undue hardship on the debtor and debtor's dependents.

• Debts resulting from DWI.

• Debts which were or could have been listed in a previous bankruptcy but were not discharged.

• Debts owed to a spouse or ex-spouse arising from a divorce or separation. In some cases these debts are dischargeable.

• Association dues for the Debtor's interest in her home.

• Debts incurred to pay non-dischargeable state or local taxes.

• Federal election law fines and penalties.

• Property settlements owed to a former spouse or to a child.

• Condo or homeowner's association fees.

• Certain fees imposed on prisoners by a court.

• Loans on pensions.

• Certain debts arising from securities violations or wrongful acts of a fiduciary.

If you have overwhelming debts that you cannot pay, please call the Law Office of Nicholas R. Westbrook at (713) 893-6204. I offer FREE consultations and can help you determine if consumer Bankruptcy is the right option for your situation. The road to financial freedom starts here.