Know Which Debts Are Not Discharged In Bankruptcy
“Bankruptcy” the legal process under the protection of the federal bankruptcy court is always boon for the consumers and businesses. By filing bankruptcy you can eliminate or repay some or all of your debts. It can happen in two ways, either liquidation or reorganization, popularly known as chapter 7 and chapter 13 bankruptcy respectively.
With Chapter 7 bankruptcy the bankruptcy trustee may take and sell some portion of your property and repay some of your debt. You can only keep the property if protected under state law. Chapter 13 bankruptcy is common among consumers as you can keep all of your property and make monthly payments over three to five years while repaying some or all of your debt.
Exceptions to Chapter 7 & Chapter 13 bankruptcy:
There are some exceptions to these two rules as well like, which debts can be covered, who can file the bankruptcy and which property you can keep or not etc. The debts could be credit card debt, medical bills, unsecured loans that you can eliminate through bankruptcy but not all kind of debts.
So what are the debts that can’t be wiped out in bankruptcy? Let us see the list of non-dischargeable type of debts here:
- Child support obligations
- Spousal support
- Secured Loans
- Most of the student loans
- Fines and penalties imposed by government
- Drunk driving obligations
- Retaliatory damages claim for willful and malicious acts
- Embezzlement or larceny i.e. any fraudulent activities in a fiduciary capacity
- Debts charged due to false statements made with a wrong intention.
Thus non-dischargeable debts can’t proceed through bankruptcy and the debtor has to pay in full in any condition. The creditor too has the complete right to collect the debt amount from the debtor. Now if you are the one among those who are not pretty sure about their type of debts, consult with a bankruptcy attorney or file bankruptcy online. Discuss your circumstances and understand whether bankruptcy would make sense to you or not.
Lawyer Reference:
It is really important that you contact a Maryland Bankruptcy Lawyer for any such bankruptcy related help from Maryland.