Filing for bankruptcy can be a difficult decision, but it can also be a powerful tool for individuals and businesses struggling with debt. However, it’s important to understand that not all types of debt can be discharged through bankruptcy. Hire a lawyer from Benenati Law Firm to learn about some of the most common types of debt that cannot be discharged under bankruptcy in the United States.
Taxes less than three years old and those associated with fraudulent activity or non-filing cannot be discharged through bankruptcy. However, taxes that are more than three years old and associated with a return that was filed more than two years ago may be dischargeable under certain circumstances.
Child Support and Alimony
Debts for child support and alimony payments are not dischargeable in bankruptcy. The rationale behind this is that these payments are considered necessary for the support of dependents and should not be discharged.
Generally, student loans are not dischargeable in bankruptcy unless the individual can prove that paying back the loan would cause an undue hardship. This is a difficult standard to meet and the majority of student loan debt is not dischargeable.
Certain fines and penalties: Fines and penalties imposed by government agencies, such as traffic fines or criminal restitution orders, cannot be discharged in bankruptcy.
Personal injury settlements
Debts resulting from personal injury settlements that were caused by the debtor’s intentional actions, such as a drunken driving incident, cannot be discharged in bankruptcy.
Most recent debts
Debts incurred close to filing for bankruptcy, such as cash advances or luxury purchases, may not be dischargeable.
Contact an experienced bankruptcy attorney!
It is important to note that these debts that cannot be dischargeable in bankruptcy are not absolute, and there are certain circumstances where an individual may be able to overcome them. For example, if an individual’s income has decreased or their debt has increased since the taxes were filed, they may be able to discharge them into bankruptcy. However, it is always recommended to consult with a qualified bankruptcy attorney who can help you evaluate your options and make an informed decision. They help to determine which types of debt can be discharged and which cannot. This will help you make an informed decision about your financial future and determine the best course of action for your case so that you can protect your interests.