Not all debts are discharged in bankruptcy. The scope of your discharge depends on the type of bankruptcy you file. If a debt is not discharged, you have to repay the debt even if you file bankruptcy.
Section 523(a) of the United States Bankruptcy Code lists the types of debts that are not discharged in bankruptcy. Some common debts not discharged in bankruptcy include the following:
(a) certain tax claims owed to government entitites
(b) debts not listed on the debtor’s bankruptcy paperwork
(c) debts for spousal or child support or alimony,
(d) debts for willful and malicious injuries to person or property
(e) debts to governmental units for fines and penalties
(f) debts for most government funded or guaranteed educational loans or benefit overpayments
(g) debts for personal injury caused by the debtor’s operation of a motor vehicle while intoxicated
(h) debts owed to certain tax-advantaged retirement plans
(i) debts for certain condominium or cooperative housing fees
(j) debts incurred shortly before filing bankruptcy
Obligations affected by fraud or maliciousness are not automatically excepted from discharge. Creditors must ask the court to determine that these debts are excepted from discharge. In the absence of an affirmative request by the creditor and the granting of the request by the court, these types of debts will be discharged.
In addition, chapter 13 provides a broader discharge than chapter 7. Debts dischargeable in a chapter 13, but not in chapter 7, include debts for willful and malicious injury to property (but not to people), debts incurred to pay non-dischargeable tax obligations, and debts arising from property settlements in divorce or separation proceedings.
If you are seeking an appointment with a Cape Coral bankruptcy attorney, contact the Rothrock Law Firm at (239) 206-1948.