debtsAlthough the majority of those who file for Chapter 7 bankruptcy can get rid of most or all of their debt, some types of debt are considered to be nondischargeable. What this means for the person filing for bankruptcy is that they are not wiped out in Chapter 7 bankruptcy and the person is still responsible for the debt or it will still be shown on their credit record. Here’s a quick run down of the debts not discharged in a Chapter 7 bankruptcy:

Denial of Bankruptcy Filing

The court may deny and application for a Chapter 7 discharge filing if you:

  • do not show the appropriate tax documents
  • don’t complete personal financial management training classes
  • transfer or hide property from your creditors before the bankruptcy
  • destroy or hide any papers, files, forms, books or records
  • commit perjury or other fraudulent acts related to your bankruptcy filing
  • cannot account for any claims of lost or damaged assets
  • violate a court order given by the judge overseeing your bankruptcy case
  • previously filed a bankruptcy case and those terms are being violated by this current filing

NonDischarge Debts

Unless a debtor can demonstrate a lot of proof of extraordinary circumstances the following debts are almost always deemed automatically nondischargeable:

  • unscheduled debts that were not included at the start of the bankruptcy case hearing
  • certain taxes and back owed taxes
  • debts related to spousal or child support or alimony
  • debts that are owed for spouse or child support or legal fees regarding a divorce
  • debts that are fines and penalties owed to government agencies
  • student loans- except under rare case by case situations
  • debts for personal injury that are the result of and DUI
  • debts owed in regards to selected types of retirement plans
  • debts for housing fees such as HOA and gated community fees
  • attorney fees that are owned in connection to a child custody and support cases, and
  • court fines and penalties, including criminal restitution.

Other Cases

There are other types of debts that might not be discharged in all instances and they include:

  • credit card purchases on luxury items that occurred within 90 days of filing for bankruptcy
  • cash advances over $925 obtained by debtor within 70 days of the bankruptcy case opening
  • debts obtained through fraud or false pretenses or criminal behavior
  • debts incurred because of a willful and malicious injury of a person or damage of property

To understand more about what debts might not be wiped out and discharged by your Chapter 7 bankruptcy case, talk to your lawyer and follow their advice about to plan and proceed with your bank filing.