The majority of people who file for bankruptcy do so in order to be released from their remaining debts. Make sure you contact a bankruptcy lawyer Montgomery.
Typical obligations that are forgiven include:
- medical expenses
- Bank cards
- Auto loan defaults
- Personal loans and assurances of debt owed by businesses
However, some debts are nondischargeable, meaning they cannot be eliminated by declaring bankruptcy. You can find the non-dischargeable debts in 11 U.S.C. 523.
Among the list of debts that bankruptcy cannot dismiss are:
- duties for providing for the family
- certain tax obligations
- education loans
- Debts owing as a result of the debtor’s “bad behavior” of any form
Duties for providing for the family
A domestic support obligation (DSO) is commonly understood to be debts payable for alimony, maintenance, or support to a spouse, ex-spouse, or child of the debtor (including aid from a governmental body like the State Department of Human Resources).
No matter what Chapter is filed, the need to pay alimony or child support continues.
However, certain debts may become due to a property settlement during a divorce. These debts may be used to equalize payments for a property division or to protect an ex-spouse from other debts that the debtor is required to pay.
Most likely, these requirements will be decided. unable to be released under Chapter 7, but they may be in Chapter 13.
Most income tax liability incurred within three years of filing for bankruptcy is regarded as non-dischargeable. The window of time to assess discharge ability starts three years after the deadline for filing a timely tax return.
If the return was submitted after the deadline, the obligation could not be dismissed until at least two years after the IRS or state levied the tax. This is why it is crucial for debtors to submit their tax returns on time before declaring bankruptcy.
Sales taxes and the payroll tax trust fund part are similarly regarded as non-dischargeable in bankruptcy. Therefore, debtors who are business owners would be advised to keep up with these taxes and make sure that they are paid first.
Even though the federal government will erase up to $20,000 in debt for certain eligible applicants, the majority of student loans that the federal government insures are not dischargeable.
Debts from your “bad behavior.”
Then, there is a category of debts that might endure bankruptcy if the creditor brings a non-discharge ability action and establishes that the debt was brought on by one of the mentioned categories of “bad behavior” on the side of the debtor, such as:
- intentional and malicious harm
- Fiduciary duty breach