Many debts can be erased through bankruptcy. However, the U.S. Bankruptcy Code carves out specific exceptions to discharge – that is, debts that cannot be erased through bankruptcy.
Debts in bankruptcy are classified as dischargeable or nondischargeable. Dischargeable debts are debts that can be erased in bankruptcy, including credit card debt and medical bills. Nondischargeable debts are debts that survive bankruptcy, they cannot be erased through bankruptcy and you will still be legally obligated to pay back these debts.
Nondischargeable Debts Are Not Erased Through Bankruptcy
Prior to filing for bankruptcy protection, it is important for you to understand which of your debts are dischargeable and which are nondischargeable. If your primary debts are nondischargeable, then bankruptcy may not be the debt relief solution for you.
We offer free consultations to anyone in Savannah, GA or the surrounding areas. Together we’ll explore your debts and how bankruptcy can help you and your family.
Pursuant to the bankruptcy exceptions to discharge, the following debts are nondischargeable:
- Domestic support obligations, including spousal or child support payments. 11 U.S.C. §523(a)(5).
- Student loans. 11 U.S.C. §523(a)(8).
- Certain tax debts, including new tax liabilities. 11 U.S.C. §523(a)(7).
- Debts incurred by fraud: Debt for money, property, or services, to the extent such debt was obtained by false pretences, a false representation, or actual fraud. 11 U.S.C § 523(a)(2)(A).
- Certain debts incurred right before filing for bankruptcy. Consumer debts owed to a single creditor totally more than $675 for “luxury goods or services” incurred within 90 days before filing for bankruptcy are “presumed to be nondischargeable.” 11 U.S.C. § 523(a)(2)(C)(i)(I).
- Debt for “death or personal injury caused by the debtor’s operation of a motor vehicle, vessel, or aircraft if such operation was unlawful because the debtor was intoxicated from using alcohol, a drug, or another substance[.]” 11 U.S.C. §523(a)(9).
This list is not exhaustive. Due to either the type of debt you owe or when or how it was incurred, you may have other debts that are also nondischargeable. When it comes to bankruptcy, every case truly is unique.
Explore How Bankruptcy Can Help You
Bankruptcy is a complex and nuanced area of law. Here at the Law Office of Barbara B. Braziel we will make sure you understand the protections and benefits of bankruptcy and how filing with affect you and your family. We take the time to explain the bankruptcy process to our clients. We invite you to get to know us here and read about the clients we’ve helped here.
To have your questions about bankruptcy in Georgia answered, come meet with us for a free consultation. We proudly serve the people of Savannah, Chatham County, Effingham County, Bulloch County, Bryan County, Liberty County, and Long County.
We are a debt relief agency. We help people file for bankruptcy relief under the U.S. Bankruptcy Code.