So you want to file a bankruptcy case, and get rid of your debts? Chances are, it may always be discharged, which can happen in broadly two scenarios. One: certain kinds of debts are not dischargeable; two: a debt may not be discharged if your creditor has an objection. We’ll only talk about the first one of these cases.
Debts That Are Not Dischargeable
Did you list down the debt?
If you forgot to mention a debt on the paperwork, it will never be discharged because your creditors will not be notified, and hence, won’t participate in your bankruptcy case. However, if your creditor still comes to know about it through some other means, then you may be able to get a discharge.
Got any taxes to pay?
Taxes may or may not be dischargeable, depending on their type, the kind of bankruptcy which you file and other factors. So for instance, if you want your income tax to be discharged, you should meet any of the following conditions.
- Your tax return, including all extensions, is due three years before you filed the bankruptcy case
- You filed a return two years prior to filing bankruptcy
- Or the authorities assess tax 240 days before you file bankruptcy
What if your debt arose from a family proceeding?
It will probably not be discharged, but there can be exceptions. Generally, these debts include alimony, child support, guardian fees, maintenance, and property settlements. Whichever of these are domestic support obligations; they are usually not discharged under both chapter 7 and 13 bankruptcies. But chapter 13 does offer some flexibility in terms of properly settlements.
Do you owe to a government agency?
If you have to repay debts to government and estate agencies like local/state governments and courts, they will usually not be discharged. But, if the fine reimburses money which the government loses because of you, then you may be able to get it waived off.
Consult with your Dayton bankruptcy lawyer about the specifics of your debts and whether or not they are dischargeable in bankruptcy.