What Types of Debts Cannot Be Discharged in Chapter 7?

For those who are suffering the stress of overwhelming debt, Chapter 7 bankruptcy can be an effective way to help them take control of their life and finances. Although many types of debt can be discharged or cleared through this process, there are others which are exempt and must be paid.

Our Brevard County bankruptcy attorneys are highly experienced, and ready to guide you through the process. Call (321) 320-6088 today to learn how we can help.

Non-Dischargeable Debts

There are actually two main categories of non-dischargeable debts – those which, practically speaking, can never be discharged, and those which can be made non-dischargeable by a creditor objection. Debts which are virtually never discharged include, but are not limited to:

  • Debts which you did not list on the bankruptcy petition
  • Certain types of tax debt
  • Owed child support
  • Spousal support debts
  • Debts related to divorce property division
  • Homeowners association fees (if you keep your home)
  • Certain types of attorney fees
  • Debts from a DUI-related personal injury suit

There are a number of other types of debt which are considered non-dischargeable, but this list includes many of the most common. Other debts which can be made non-dischargable if the creditor objects include certain “luxury” credit card purhases made within 90 days of the bankruptcy filing, and any other debts which were incurred due to fraud or willful injury to another party.

What About Student Loans?

With the rising cost of a college education, it’s becoming more and more common for people to struggle with student loan debt. Unfortunately, courts will typically deny discharge for these debts unless your Brevard County bankruptcy lawyer is able to successfully demonstrate that you would experience undue hardship if you were forced to pay them. Typically, you must prove that you:

  1. Will not be able to maintain a minimal standard of living if you are required to pay off the student loans
  2. Are in a financial situation that seems unlikely to change in the near future
  3. Have demonstrated that you have been making an effort to pay off these debts

Not sure if bankruptcy is right for you? Call our firm today for a free case evaluation.

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