While bankruptcy is an excellent way to give yourself a fresh financial start, it cannot discharge all of your existing debts. Some debts simply must be paid, and these will not be discharged during your bankruptcy case. Our Athens attorneys want you to know which debts cannot be discharged so that you can make the best decision for yourself and your finances.
Differences Between Chapters 7 and 13
Chapter 7 and Chapter 13 bankruptcy address the discharging of debts in different ways, and some debts that would be discharged in one might not be discharged in the other.
You should discuss your financial situation in detail with your bankruptcy attorney to determine which form of personal bankruptcy will be able to best discharge your debts.
Debts That Can’t Be Discharged
Certain debts cannot be discharged, regardless of which form of personal bankruptcy you choose to file. These include:
- Domestic support obligations, such as alimony and child support.
- Student loans.
- Certain taxes.
- Debts incurred through fraud, false pretenses or false representation.
- Debts incurred after filing your case and debts you failed to include in your bankruptcy plan.
- Debts for willful and malicious injury.
- Debts associated with fines or penalties as owed to the government.
- Any debts that are non-dischargeable under other laws.
In addition to these debts, other debts may remain undischarged depending on which form of bankruptcy you pursue. Chapter 7 is much more inclusive with the debts it discharges, and it can help you to completely eliminate debts like car loans and mortgages by returning these properties to their respective lender.
People typically file for Chapter 13 when they want to restructure their debt instead of eliminating it completely. This restructuring allows them to keep mortgaged and loaned property while also giving them a more reasonable repayment schedule.
If you are concerned about your debts and want to determine if they will be dischargeable via bankruptcy, talk to one of our bankruptcy lawyers at Morgan & Morgan. We can help you to determine which debts would ultimately be discharged and which ones you would remain responsible for. We can also advise you as to whether bankruptcy is the best financial decision for your personal situation.
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