| Debts You Must Pay Even After Filing Bankruptcy |
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| Written by Stephen Trezza |
| Wednesday, 27 October 2010 15:38 |
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Although filing for bankruptcy will remove much of your unsecured debt, there are still several types of debt that cannot be eliminated. Rules regarding bankruptcy specifically identify the following items as exempt from release per Section 523(a) of the Bankruptcy Code.
Although filing for bankruptcy will remove much of your unsecured debt, there are still several types of debt that cannot be eliminated. Rules regarding bankruptcy specifically identify the following items as exempt from release per Section 523(a) of the Bankruptcy Code. In a Chapter 7 bankruptcy, you cannot eliminate: Alimony or child support Certain tax debt Student loans Luxury items purchased within 90 days of filing bankruptcy and worth more than $500 Government fines Cash advances above $750 that were made within 70 days of filing bankruptcy Debts that are determined to be fraudulent Damages that are a consequence from the willful or malicious or injury of another person Condominium or home owner's association fees Personal injury or death from the operation of a vessel, vehicle, or aircraft In some cases, debts that are not listed on your schedules A debt that results from maliciousness or fraud is not exempt from a bankruptcy discharge automatically. The creditor must take action and request the court to specifically prevent the discharge of this type of debt. If the creditor does not do this, the debt will then be discharged. In a Chapter 13 bankruptcy, you cannot eliminate: Student loans Government fines Child support or alimony Drunk driving judgments Certain tax debt Debts that result from fine or restitution from a criminal case One type of debt that might be possible to eliminate from a Chapter 13 bankruptcy is a debt that results from wrongdoing or fraud that is deemed intentional. In this case, the creditor must file and prevail in an action and request to have the debts ruled non dischargeable. If the creditor does not, then the debtor will receive the discharge of debt. Navigating the nuances of the bankruptcy process can be confusing for individuals. For the best course of action for your situation, discuss your needs with a local bankruptcy expert. DISCLAIMER: This article is provided as information only and is not to be taken as financial advice. Stephen Trezza has effectively managed a wide variety of cases, including many Arizona bankruptcy cases. For further information regarding Pima county bankruptcy court, go to the FileBankruptcyinArizona site now. |