When most people hear “Chapter 7 bankruptcy” they assume it is a way to rid oneself of debt. While this is mostly true, there are some debts which are not dischargeable in Chapter 7 bankruptcy. Consulting with an experienced and knowledgeable Troy, Ohio bankruptcy attorney provides the debtor a greater likelihood for a successful outcome.
According to the United States Bankruptcy Code (Title 11 of the U.S.C.), there are several types of non-dischargeable debts depending on the nature of the debt and how the debtor obtained them. In most cases, these particular debts are completely non-dischargeable and, thus, creditors may continue their collection efforts following the case’s conclusion. Further, in some cases, creditors may even challenge the discharge of their own particular debt(s). Finally, in rare cases such as the debtor’s demonstration of extraordinary circumstances, some non-dischargeable debts may, in fact, be discharged.
Among the most common types of non-dischargeable debts are:
- Unscheduled debts and those not listed on the original bankruptcy petition
- Some types of taxes
- Spousal or child support and attorney fees in these cases
- Post-divorce debts owed to a former spouse and/or child
- Fines and/or penalties
- Court-ordered restitution
- Student loans
- Personal injury debts as a result of driving under the influence or while intoxicated
- Some retirement plan debts
- Unpaid homeowners’ association fees
Among those debts creditors may object to the court’s discharge include:
- Credit card purchases for luxury items purchased within ninety (90) days of filing bankruptcy that cost $650 or more
- Cash advances over $925 made within seventy (70) days of filing bankruptcy
- Debts due to fraud
- Debts stemming from malicious and willful harm to another’s person or property
Court Denial of Chapter 7 Discharge
Most cases of denial of discharge occur when the debtor fails to adhere to court rules or does not provide the required information Thus, even if a debt is eligible for a full discharge, the debtor’s failure to cooperate could jeopardize his or her outcome.
Other situations in which a court can outright deny discharge include:
- Failing to provide tax documents
- Transferring property to another or hiding it altogether
- Failing to attend a court-ordered personal financial management course
- Destroying financial records
- Violating a court order
- Filing a previous bankruptcy within specific time frames
For more information about dischargeable and non-dischargeable Chapter 7 bankruptcy debts or to schedule a consultation to see if bankruptcy is for you, please contact us.