Non-dischargable Debt In Personal Bankruptcy

By Steve M. Bingman

The main reason people file bankruptcy, especially a chapter 7 bankruptcy, is to obtain a discharge of their debts so that they will not have to pay the debts. However, not all debts are dischargeable. There is non-dischargable debt in personal bankruptcy.

Some of the common debts that are automatically non-dischargeable in bankruptcy and, therefore, still valid and collectable after bankruptcy are as follows:
     - debts for certain types of tax claims
     - debts not listed by the debtor on the debt lists that the debtor files with the bankruptcy court
     - debts for spousal support, child support, or alimony
     - debts for willful and malicious injuries to another person or to property
     - debts to governmental units (federal, state, and local) for fines and penalties
     - debts for most government funded or guaranteed educational loans (but there may be a hardship exception) or benefit over payments
     - debts for personal injury caused by the debtor's operation of a motor vehicle while intoxicated
     - debts owed to certain tax-advantaged retirement plans
     - debts for certain condominium or cooperative housing fees
     - other debts covered by section 523(a) of the US Bankruptcy Code

There are some debts which may be non-dischargeable if a creditor objects and asks the bankruptcy court to exclude the debts from discharge. If a creditor does not object to the discharge of these debts, then the debts are discharged that same as other debts. Two types of these debts are:
     - debts incurred by the debtor by fraud
     - debts incurred by the malicious acts of the debtor

Finally, with personal bankruptcy, there are some debts that may be dischargeable under a chapter 13 bankruptcy even though they are not dischargeable under a chapter 7 bankruptcy. These debts include:
     - debts for willful and malicious injury to property
     - debts incurred to pay non-dischargeable tax obligations
     - debts arising from property settlements in divorce or separation proceedings

While the above lists may seem to be long, they affect only a small percentage of people. The majority of people have credit card debts, medical debts, and other forms of personal debts which are dischargeable in personal bankruptcy. But, as you can see, there can be non-dischargable debt in personal bankruptcy.

This is general information. If you need specific information or have any questions of any nature whatsoever, talk with a lawyer licensed in your state.

For more general information, see Bankruptcy. For more detailed information see bankruptcy information.

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