What Debts Must Be Paid After Bankruptcy?

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When a person is struggling financially, they often look towards different methods to help them during this time. There are many different means of assistance to help a person get back on their feet in these situations. Sometimes, people choose to file for bankruptcy as a means of assistance. In doing so, they are able to relieve some stress and restructure their finances. This allows them to work towards rebuilding their finances and create a better future for themselves.

When filing for bankruptcy, debtors can be given a fresh start regarding their finances. Individuals are able to file for Chapter 7 or Chapter 13 Bankruptcy depending on their personal situation. In doing so, they are able to restructure their finances and pay back creditors over time. Once either of these types of bankruptcies is filed, there are certain debts that will be discharged, or thrown out, once the case is done and the debts are paid off. While some debts are dischargeable, there are other non-dischargeable debts that cannot be thrown out.

Dischargeable Debt

When a debtor is done paying their financial plan, some of their debts may be discharged. If a debt is discharged, it means the debtor is no longer required to pay it off. In addition to this, the creditor who gave the loan is no longer able to try and collect this debt. There are many different types of debt that an individual may be relieved of after completing their bankruptcy plan. This can include:

  • Medical bills
  • Credit card debt
  • Past due utility bills
  • Personal loans made by family, friends, and others
  • Lawsuit judgments against the debtor
  • Obligations under leases and contracts

Non-Dischargeable Debt

While these debts can be discharged, there are other debts that do not go away and the individual is still required to pay off. Non-dischargeable debts cannot be thrown out when a person files for bankruptcy and completes their payment plan. This can include the following debts:

  • Child support payments
  • Alimony payments
  • Attorney fees for child custody or support
  • Student loans
  • Certain types of taxes
  • Fraud debts
  • Fines or penalties owed to government agencies
  • Civil judgments for injuries due to deliberate wrongdoing or driving while intoxicated
  • Criminal restitution and other court fines and penalties

It is important to know that there are certain non-dischargeable debts that are not subject to a hearing. Other times, it is possible to have some non-dischargeable debts discharged if a creditor does not challenge it.

Contact our Firm

If you require the services of an experienced Business Law or Bankruptcy attorney, contact the Law Offices of Allen A. Kolber, Esq. today to schedule a consultation and discuss your options.