What debts are not dischargeable in bankruptcy?

Bankruptcy won’t extinguish every debt. Debts usually not dischargeable in bankruptcy include:

  1. Federal taxes less than three years old and state and local taxes
  2. Child support and alimony
  3. Student loans
  4. Criminal fines and penalties (i.e. restitutions and traffic fines)
  5. Liabilities incurred through drunk driving
  6. Withholding tax assessments
  7. Dischargeable debts not listed on your bankruptcy schedules
  8. Debts incurred through fraud

Debts not dischargeable in Chapter 7 bankruptcy may be dischargeable or resolved in Chapter 13. The bankruptcy court can also deny the discharge of other debts in Chapter 7 bankruptcy based upon the debtor’s inequitable conduct.

Secured debts and liens are dischargeable only to the extent the debt exceeds the value of the secured asset. Bankruptcy eliminates any remaining personal liability. The secured parties’ rights become limited to the collateral’s value and then their rights thereafter become the same as unsecured creditors.

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