What Debts Are Not Discharged

As explained earlier, the basic purpose of bankruptcy is to obtain a discharge of your debts. However, some specific types of debts are not discharged (i.e., the

bankruptcy does not relieve you of your obligation to pay). Those debts are as follows:

A. In a CHAPTER 7 case:

1. In some cases, debts not listed in the schedule of creditors.Therefore, it is important to list all your creditors.

2. Certain taxes, including funds borrowed with which to pay such taxes. For details on determining which tax debts are discharged

3. A claim based upon money, property, services, or credit obtained by fraud or false pretenses (e.g., a false financial statement used to obtain credit or charges incurred on a credit card when you had no intent to pay for the charge, will be considered this type of debt).

4. Consumer debt for more than $500.00 for luxury goods or services to a single creditor, incurred within 90 days of filing the petition.

5. Cash advances of more than $750.00 under an open end credit plan made within 60 days of filing bankruptcy.

6. Alimony and child support, and marital debts arising out of a separation agreement or court order.

7. Damages for willful and malicious injury.

8. Certain governmental penalties and fines.

9. Educational loans, except in cases of prolonged and severe hardship. However, undue hardship is a very difficult standard to meet.

10. Any debt for death or personal injury caused by the unlawful operation of a motor vehicle, vessel or aircraft while intoxicated.

11. Loans from retirement accounts and federal thrift savings accounts

12. Debts for violation of federal and state securities laws or common law fraud, deceit or manipulation in connection with the purchase or sale of a security.

13. A debt for fraud or defalcation (dishonesty) while acting in a fiduciary (position of trust) capacity, embezzlement or larceny.

B. In a CHAPTER 13 case:

1. Any debt not listed in the schedule of creditors. Therefore, it isimportant to list all your creditors.

2. Withholding and sales taxes.

3. Tax debts in which the tax returns or tax reports were not filed or were filed late and less than 2 years prior to filing the bankruptcy.

4. Tax debts in which you filed a fraudulent return or willfully attempted to evade the taxes.

5. A claim based upon money, property, services, or credit obtained by fraud or false pretenses (e.g., a false financial statement used to obtain credit or charges incurred on a credit card when you had no intent to pay for the charge, will be considered this type of debt).

6. Consumer debt for more than $500.00 for luxury goods or services to a single creditor, incurred within 90 days of filing the petition.

7. Cash advances of more than $750.00 under an open end credit plan made within 60 days of filing bankruptcy.

8. A debt for fraud or defalcation (dishonesty) while acting in a fiduciary (position of trust) capacity, embezzlement or larceny.

9. Educational loans, except in cases of prolonged and severe hardship. However, undue hardship is a very difficult standard to meet.

10. Any debt for death or personal injury caused by the unlawful operation of a motor vehicle, vessel or aircraft while intoxicated.

11. Restitution or criminal fine included in a sentence upon conviction of a crime.

12. Secured debts paid under the “cure and maintain” method.

13. Restitution or damages awarded in a civil action against you as a result of willful or malicious injury to or the deceit of an individual.

**The information you obtain at this site is not, nor is it intended to be, legal advice. You should consult an attorney for individual advice regarding your own situation.**