No one plans on filing for bankruptcy. Sometimes bad things happen to good people, and they need a do-over. Cressman Law is here to provide the support you need to take action and educate you on your options when facing bankruptcy. We will review your case and identify what kinds of debt relief you can expect from bankruptcy, offering you guidance at every step in the process. Below, we discuss non-dischargeable debts and how they impact filing for bankruptcy.
What is Non-Dischargeable Debt?
Unsecured debts like credit card debts and medical bills can be relieved when filing for bankruptcy. However, some debts cannot be eliminated even after filing for bankruptcy. These debts are referred to as non-dischargeable. You are still responsible for making payments on non-dischargeable debts even after filing for Chapter 7 or Chapter 13 bankruptcy.
Determining Non-Dischargeable Debts
Several factors determine whether a debt will be non-dischargeable. Here are the most common reasons:
Type of Bankruptcy Filing
Whether a debt is dischargeable may change depending on whether you filed for Chapter 7 or Chapter 13 bankruptcy. There are fewer types of debts that are non-dischargeable if you file for Chapter 13 than if you file for Chapter 7.
Public Policy Interest
Most debts that support dependents and family members are nondischargeable. These include child support or alimony payments.
Fines from traffic tickets, court penalties, and payments required after a DUI conviction are non-dischargeable.
If you intentionally failed to disclose certain creditors or debts during your initial bankruptcy filing, you may be ordered to repay those debts even if the debt would have otherwise been dischargeable.
Types of Non-Dischargeable Debts
While there may be occasional exceptions, in most cases, you are responsible for paying for things such as:
- Alimony or other domestic support payments
- Child support
- Student loans
- Federal taxes
- Debts or fines payable to a governmental entity
- Debts owed for luxury items obtained within 90 days of filing for bankruptcy
- Debts owed for cash advances on credit cards
Challenging Non-Dischargeable Debts
You may challenge what is considered a non-chargeable debt to eliminate those payments after filing for bankruptcy, although many people fail to meet the strict requirements. For instance, student loans are generally non-dischargeable. However, you could prove to the court that paying your student loans would cause undue hardship indefinitely and make you unable to meet your basic needs, such as food, clothing, and shelter. You would also need to show that you made an effort to make those payments before filing for bankruptcy.
Cressman Law: Your Guide To Florida Bankruptcy
Mark P. Cressman is an experienced Florida bankruptcy lawyer who can thoroughly evaluate your situation and give you a clear picture of what to expect after filing for bankruptcy. We know that the last thing you need is to come out of bankruptcy in the same financial place you are now. We explore all options to discharge any debt we can so you have the resources to handle the rest. Contact our office at 407-495-2337 or schedule a free consultation online with Mark P. Cressman. We can usually have an appointment booked or return your call within 24 hours.