Non-dischargeable debt refers to any debt that bankruptcy can’t eliminate. There are many different ways people can fall into debt, but as helpful as bankruptcy can be for most kinds of debt, there are some kinds that bankruptcy doesn’t wipe out.
Understanding what non-dischargeable debt is and how much of it you have can help you make more informed decisions about bankruptcy. For example, it can help you determine whether it’s more beneficial to file for Chapter 13 than Chapter 7 bankruptcy.
Having some key knowledge about your debt can also help you feel more confident about seeking professional assistance from an experienced bankruptcy lawyer.
Examples of Non-Dischargeable Debt
There are many different kinds of non-dischargeable debt, such as the following:
- Alimony
- Child support
- Personal injury award as a result of DUI
- Debts owed to tax-advantaged retirement plans
- Court fines and penalties
- Federal tax liens
- Penalties for tax fraud
- Payroll taxes
It’s possible to discharge student debt in bankruptcy, but the conditions that make it possible are very stringent. Consult with a bankruptcy lawyer if seeking student debt relief is a major factor for considering bankruptcy.
Non-Dischargeable Debt & Chapter 13 Bankruptcy
Although the debts we outlined above can’t be discharged with bankruptcy, that doesn’t mean bankruptcy can’t help. If you have a lot of non-dischargeable debt, it can be reorganized in Chapter 13 bankruptcy.
Debt reorganization can help you establish a realistic plan to repay non-dischargeable debt for three to five years. You may also seek relief from other debts – such as credit card or medical debt – that the court can discharge if you successfully complete your repayment plan.
Contact an Attorney to Learn More
It’s important to understand your debt and how you can deal with it. Consulting with an experienced bankruptcy attorney can offer the information and insight you’ll need to make the decisions that work best for you.
Our lawyers at Buchalter & Pelphrey Attorneys At Law can help. Contact us online today to request a consultation.