CHAPTER 13 BANKRUPTCY

NONDISCHARGABLE DEBTS AND OBLIGATIONS

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NONDISCHARGABLE DEBTS AND OBLIGATIONS

Unfortunately, some debts are nondischargable, some are nondischargable in a Chapter 7 bankruptcy but are dischargable in a Chapter 13 bankruptcy, and others are only dischargable in certain circumstances. 

Child Support and Maintenance/Alimony pursuant to an order of a domestic relations court are never dischargable.  However, a Chapter 13 bankruptcy plan can be used to pay such obligations that are past due or in arrears. These obligations are broadly defined as amounts due to a spouse, former spouse, or child of the Debtor or such child's parent, legal guardian, responsible relative or governmental unit.  They include child support, maintenance/alimony, medical expenses, educational expenses and guardian ad litem fees.

Property Settlements pursuant to a judgment for dissolution of marriage or divorce decree are never dischargable in a Chapter 7 Bankruptcy but can be dischargable in a Chapter 13 bankruptcy for less than the full amount due.

Federal and State Income Taxes are not dischargable unless more than three years have passed since the income taxes became due and the income tax returns have been filed more than two years prior to filing the Bankruptcy.  A Chapter 13 bankruptcy plan can be used to pay such obligations and avoid garnishments, levies and other collection actions by the IRS and other taxing authorities.

Other Taxes such as payroll withholding taxes and sales taxes are nondischargable.  A Chapter 13 bankruptcy plan can be used to pay such obligations and avoid garnishments, levies and other collection actions by the IRS and other taxing authorities.

Fraudulently Incurred Obligations are not dischargable.  These obligations generally occur when the Debtor has made false statements that have induced the creditor to act adversely to his own interests.  A Chapter 13 bankruptcy plan can be used to pay such obligations and avoid garnishments, levies and other collection actions by the Creditor.

Obligations Arising from Theft or Larceny by the Debtor are nondischaragable.  A Chapter 13 plan can be used to pay such obligations and avoid garnishments, levies and other collection actions by the Creditor.

Obligations for Death or Personal Injury are nondischargable if caused by the Debtor's operation of a motor vehicle, vessel, or aircraft if such operation was unlawful because the Debtor was intoxicated from using alcohol, a drug, or another substance.  A Chapter 13 bankruptcy plan can be used to pay such obligations and avoid garnishments, levies and other collection actions by the Creditor.

Student Loans are nondischaragable except in cases of undue hardship.  The burden to show undue hardship is on the Debtor and is often very difficult to prove. A Chapter 13 plan can be used to pay such obligations and avoid garnishments, levies and other collection actions by the Creditor.

Criminal Fines and Restitution are nondischargable.  A Chapter 13 bankruptcy plan can be used to pay such obligations and avoid garnishments, levies and other collection actions by the Creditor.

Consumer Debts Incurred for the Purchase of Luxury Goods within the 90 day period prior to filing a Bankruptcy petition are not dischargable.

Cash Advances Aggregating more than $875.00 and obtained within 70 days of filing a Bankruptcy petition are nondischargable.

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