Non-Dischargeable Debts A Chapter 7 bankruptcy is a powerful tool and can in many cases wipe out all of one’s debts. But some debts are not dischargeable under current bankruptcy law. These are debts that lawmakers have determined should not be extinguished when one seeks Chapter 7 protection. If you file for Chapter 7 bankruptcy, generally speaking, you will continue to be responsible for the following debts:
most student loan debt;
most debts incurred to pay non-dischargeable taxes;
domestic support obligations and property settlement agreement obligations;
most fines, penalties, forfeitures, criminal restitution obligations; and certain debts not properly listed in your bankruptcy papers.
There are some additional debts that are generally non-dischargeable, including debts for death or personal injury caused by operating a motor vehicle while intoxicated from alcohol or drugs. Also, if a creditor can prove that a debt arose from fraud, breach of fiduciary duty, theft, or from a willful and malicious injury, the bankruptcy court may determine that the debt is not discharged.
There are special exceptions in some of these cases, but this is why you should consult with experienced counsel who can discuss your own unique circumstances and then determine which of your debts are non-dischargeable.
Contact the Simpson Law Firm at (703) 548-3900 and talk to Mr. Simpson. We can discuss the nature of your debts with you so you can better understand which debts may and may not be non-dischargeable in bankruptcy.