Not All Debts Can Be Discharged Through Bankruptcy

The bankruptcy process can come as a relief to those in the Owensboro area who are burdened with overwhelming debts that they simply have no means of paying back. In a Chapter 7 bankruptcy, a debtor’s nonexempt assets are liquidated to pay back the debtor’s creditors. In a Chapter 13 bankruptcy, a debtor will enter a court-ordered repayment plan that allows them to repay their debts in a manageable way over the course of three to five years. While the goal of a bankruptcy filing is to ultimately have your debts discharged, there are a few types of debts that cannot be forgiven through the bankruptcy process.

Alimony and Child Support

If you are behind in your alimony or child support payments, you will still owe these debts post-bankruptcy.

Tax Debt

Certain types of tax debt, such as tax liens may not be discharged through bankruptcy. However, some tax debt may be dischargeable if it dates back a certain number of years.

Debts for Willful and Malicious Injury

If you owe money for deliberately and without just cause injure another person or property, these debts are not dischargeable through the Chapter 7 bankruptcy process. If you are filing for Chapter 13 bankruptcy, this applies only to debts related to injuries. Debts related to property damage are dischargeable in a Chapter 13 bankruptcy.

Do Not Lose Hope If You Owe Some of These Debts

If you owe alimony, child support, tax debts or other debts not dischargeable through bankruptcy, do not lose hope. By filing for bankruptcy, you can have many other secured and unsecured debts discharged, freeing up income to pay back non-dischargeable debts and allowing you to move forward on more solid financial footing.

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