People who are overwhelmed with the burden of overwhelming unpaid debts often turn to bankruptcy for relief. In the case of Chapter 7 bankruptcy, after debtors liquidate their assets to satisfy their creditors, a majority of their debts will be permanently discharged, allowing them to start fresh towards a new future. While bankruptcy can be a perfectly legitimate and honorable way for a person to reboot their financial situation, not all debts will be discharged via this method. Certain non-dischargeable debts will still be the responsibility of the debtor after bankruptcy. If a person files for Chapter 13 bankruptcy, these debts must be paid in full as part of their proposed repayment plan.
The following types of debt will oftentimes not be dischargeable:
- Unpaid child support
- Unpaid alimony
- Personal injury restitution
- Most student loans
- Traffic fines
- Criminal fines and restitution
- Income tax debt less than three years old
- Debts not listed in bankruptcy application
It is also important to note that debtors must continue to make payments on any secured debts such as mortgages and car loans in order to be able to keep the secured property. Furthermore, if a creditor chooses to dispute a debtor’s request for a discharge, a bankruptcy judge can use their discretion and declare other types of debt non-dischargeable.
A creditor may challenge the discharge of several types of debt, including:
- Debts incurred by fraudulent means
- Debts incurred by willfully or maliciously harming another person or their property
- Debts resulting from illegal acts such as embezzlement or larceny
- Most debts owed under a divorce settlement
- Purchases of luxury items and services totaling $1,150 made within 60 days of filing for bankruptcy
- Cash advances and loans totaling $1,150 or more taken within 60 days of filing for bankruptcy
Skilled Bankruptcy Attorney Serving Clients in New York
If you are struggling to make ends meet under the burden of rising debt, a New York bankruptcy lawyer from the Law Office of Simon Goldenberg, PLLC can guide you through the process of filing for bankruptcy and help you move towards a debt-free future. Having earned a “Superb” Avvo Rating and two consecutive Super Lawyers® inclusions for our unparalleled advocacy, our firm can provide the strong support you need to get you through this difficult time as smoothly as possible.
Call (888) 301-0584 or contact us online today to review your debt relief options.