Some debts are not dischargeable in a Chapter 7 or a Chapter 13 bankruptcy. Under Chapter 7 bankruptcy, you will continue to be responsible for paying these debts even after you receive a discharge. Under a Chapter 13, these debts will be included in your payment plan. If the debts are not paid, the balance will not be discharged at the conclusion of your payment plan. Keep in mind that secured debts such as homes and cars must continue to be paid if it is your intent to keep them.
Non-dischargeable debts are:
- Debts incurred as a result of driving while intoxicated and causing personal injury or death.
- Student loans. These might be dischargeable if you can prove an extreme undue hardship such as a medical condition that prevents you from obtaining employment.
- Fines and penalties due to local government agencies for violations of the law. This includes traffic citations and restitution for criminal activity.
- Income tax debt owed within the 3 years prior to filing and all other tax debts.
- Debts you do not list in your bankruptcy papers.
- Child support, alimony, and other debts related to family support.
If a creditor challenged any of the following debts, a bankruptcy judge may declare that they are not dischargeable:
- Any debts that were incurred through fraud.
- During the 60 day period before filing, any credit charges for luxury goods or services
- Loans or cash advances taken in the 60 days prior to filing.
- Debts that arise from willful or malicious injury to another person or another person's property.
- Debts that are a result of larceny, breach of trust or embezzlement.