Thursday, December 30, 2010
Dischargeable and Non-Dischargeable Debts in Bankruptcy
When you file for bankruptcy, your debts fall into two different categories. These categories help determine what debts you will still owe your creditors and what debts will be wiped out. With the help of a bankruptcy lawyer, you can determine which debts fall into which category.
The two debt categories are dischargeable and non-dischargeable debts. Dischargeable debts are those that can be wiped out and will no longer be owed. Non-dischargeable debts are those that still must be paid after your bankruptcy proceedings.
Examples of dischargeable debts for Chapter 7 Bankruptcy are:
- Balances on your credit card accounts
- Business debts
- Personal loans
Examples of non-dischargeable debts for Chapter 7 Bankruptcy and Chapter 13 Bankruptcy are:
- Any debts you fail to list on your bankruptcy paperwork
- Family support debts (e.g. alimony and child support)
- Student loans
- Traffic tickets or criminal restitution
- Debts for the personal injury or wrongful death of another you caused by driving under the influence of drugs or alcohol
- Federal, state, and local taxes