Bankruptcy generally cannot eliminate debt for child support, alimony, student loans, secured debts, and some other specific types.It also cannot eliminate most tax debt. Below are additional details about what bankruptcy cannot do in these circumstances.
Child support and Alimony Payments
Child support and alimony debts survive meaning you will still be obligated to pay them even after filing for bankruptcy. In cases where Chapter 13 is filed your plan will have to include these debts being repaid in full.
Student Loan Debts
The only way by which student loans can be discharged in is if it can be shown that repaying the loan would cause undue hardship to you. Proving that repaying a student loan will cause you undue hardships is very tough hard to do. To be successful at doing so you must be able to prove not only that you are unable to afford to pay your loans now, but also that there is almost no chance for you not be able to repay them in the future. Most people have a difficult time providing proof to the court that they will not be able to repay the debt anytime in the future.
Repossession of Property from a Secured Creditor
While a bankruptcy discharge eliminates debts, it does not eliminate liens. This means that if have a secured debt where the creditor has a lien on your property bankruptcy can eliminate it. While they are eliminated, it cannot prevent the creditor from repossessing the property.
Tax Debts
Using bankruptcy in an effort to eliminate tax debt is extremely difficult. However, at times it is possible for older debts of unpaid income taxes to be eliminated. To do this you need to must meet several requirements set by the court.
Elimination Which Cannot be Discharged
Any debts you have forgotten to list in your bankruptcy papers cannot be discharged unless the creditor becomes knowledgeable of your case.
Fines and penalties for violating the law can not be discharged. This includes traffic tickets and criminal restitution. Other debts which can not be eliminated concerning illegal action on your part include any debts for personal injury or death which have been caused by you while driving intoxicated.
The above mentioned debts concerning violations of the law will remain even after your Chapter 7 bankruptcy is closed. Should you file for Chapter 13 it will be required that you pay these in full during your repayment plan. Any of these debts which are not repaid in full during your Chapter 13 repayment plan will remain at the end of your case.
There are other types of debts which you may be unable to discharge should the creditor successfully convince the judge that they should be eliminated by your bankruptcy. These can be those which have been incurred through fraud. Fraud is these circumstances can include giving false information on an application for credit from the creditor to obtain a loan or merchandise.
Related Posts
- Debts That Can Remain After Chapter 7 Bankruptcy in Georgia
- Preparing for a Chapter 7 Bankruptcy in Georgia
- Remaining Debts After Chapter 13 Bankruptcy in Georgia
- Business Debt and Chapter 7 Bankruptcy in Georgia
- Discharge of Chapter 13 Bankruptcy in Georgia
- Who Can File for Chapter 7 in Georgia?
- Getting to know the Parties Involved in Chapter 7 Bankruptcy in Georgia
- Chapter 7 Bankruptcy in Georgia Debt Discharge
- Release of Bankruptcy Information in North Georgia
- Exempt vs. Non-Exempt Property in Chapter 7 Bankruptcy in Georgia
