Discharge

A successful bankruptcy case typically discharges the majority of your debts. However, it is important to understand that not all debts are dischargeable. This means when your case is finished, you are still responsible to pay these non-dischargeable debts.

Child Support – If you are required to pay alimony or child support payments, this responsibility cannot be discharged. The law seeks to protect individuals who are entitled to receive this type of support.

Taxes – Certain taxes cannot be discharged. However, if the liability is three years old or more and you filed your return on time, you may be able to get relief from those taxes.

Student Loans – Any educational loan that is still outstanding in your name (whether it is from a non-profit organization or from a government body) comes under non-dischargeable debts. But, here again, there can be some exceptions that have been broadened with the introduction of 2005 Bankruptcy Reform Act. For example, if the repayment responsibility is likely to impose an undue hardship on the bankrupt individual, the court may consider discharging student loans also as part of the bankruptcy order.

Fraud – If it is proven that certain debts were incurred as the result of fraudulent activities or under false pretenses, the debts will not be discharged. Typically, a creditor files a motion alleging the fraud and a special hearing is held to determine whether fraud exists.

Fines – Bankruptcy does not discharge certain fines, such as criminal restitution ordered by a court, traffic tickets or any other such charges.

Credit Purchases – If luxury goods or services are purchased on credit, the resulting debt is not likely to be discharged, especially if the purchases were made within the recent days leading up to the bankruptcy filing and the total amount of money owed to a single creditor is more than $500.

Drunk Driving Liability – If someone has been found guilty of driving while drunk and causing a wreck, and a court has ordered them to pay compensation to the victim (the injured person in the accident), the compensation liability is non- dischargeable.

Marital Debts – Bankruptcy laws also prohibit discharge of any debts that incurred during the course of separation or divorce agreement.

The above list is not all-inclusive. If you are considering filing for bankruptcy, we can help you know if your debts are dischargeable or not so you can decide whether bankruptcy is the right choice for your situation. Don’t wait any longer to get the relief you need. We can help you stop struggling under the crushing weight of debt. Call (559) 495-1529 to schedule your free consultation and start enjoying life again.