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Although most unsecured debts may be discharged in Chapter 7 bankruptcy or after completion of a Chapter 13 repayment plan, certain debts are absolved from the bankruptcy process as a matter of law. Such non-dischargeable debts include:
Debts for money, property, services, or refinancing of credit, to the extent that the debts were obtained through false pretenses and/or fraud for consumer debt in the amount of $550 for luxury goods* that were purchased in the 90 days before filing of the bankruptcy. Also, cash advances aggregating more than $825 within the 70 days before filing of the bankruptcy are included in this category of non-dischargeable debts. Please consult one of our attorneys for determination of the dischargeability of your debts.
*The term “luxury goods” does not include goods or services reasonably necessary for the support or maintenance of the filer or her/his dependents.
Debts that were not included in the bankruptcy petition as required by section 521(a) that would have allowed the creditor to file a timely proof of claim, unless the creditor had notice or actual notice of the bankruptcy case in time to file a proof of claim. Please, note that your attorney will contact the three credit agencies to obtain the most up-to-date copy of your credit report. However, the accuracy of your creditor information for debts that are not listed on your credit report is your responsibility.
Debts for domestic support obligations (child support, alimony, or debts resulting from the dissolution of the filer’s marriage) are non-dischargeable in bankruptcy. However, certain exceptions do apply for filers in chapter 13. Please consult one of our attorneys to ensure that your debts may be discharged in bankruptcy.
Currently, both private and federal loans issued for the purposes of education are considered non-dischargeable in bankruptcy. Certain exceptions may apply for filers who are able to satisfy the requirements of the “undue hardship” test. Please consult one of our attorneys to ensure that your debts may be discharged in bankruptcy.
Past due balances for both federal and state taxes may not be discharged in bankruptcy, unless these balances are at least three years old. However, it is important to include any tax balances in the bankruptcy petition as they will be paid first by the bankruptcy trustee if there are any funds in the bankruptcy estate. Please consult one of our attorneys to ensure that your debts may be discharged in bankruptcy.