Discharge and Dischargeability of Debt in Bankruptcy

Written by Adam Peck Category: Nursing Homes January 23rd, 2013 2 min read

What’s a Discharge?
In both Chapter 7 (liquidation) and Chapter 13 (readjustment of debts), the bankruptcy court will grant you a discharge from your debts. This means that you’ll have no further responsibility for the discharged debts, and your creditors can take no further collection actions against you states Los angeles Bankruptcy Attorney Steven C. Peck.
Certain debts can’t be discharged in bankruptcy: The Bankruptcy Code lists 21 categories of such debts.

In a Chapter 7 case, the most common types of debts that can’t be discharged are:

•Taxes and tax liens
•Student loans
•Alimony and child support (domestic support obligations)
•Debts obtained through fraud, false pretenses or false representation
•Debts you failed to schedule in time to allow creditors to file proofs of claim (unscheduled debts)
•Debts for fraud while you were acting in a fiduciary capacity, or for embezzlement or larceny
•Debts for willful and malicious injury
•Debts for fines or penalties to governmental units
•Debts for judgments in wrongful death or personal injury lawsuits resulting from motor vehicle, vessel or aircraft accidents while you were intoxicated
•Condominium or cooperative association fees or assessments
If your bankruptcy case is under Chapter 13, you won’t be discharged from the following types of debts:

•Child support and alimony (domestic support obligations)
•Student loans
•Fines and restitution
•Certain taxes, such as withholding taxes if you had employees, or taxes connected to fraudulent tax returns or tax evasion
•Debts incurred through fraud
•Debts for fraud while you were acting in a fiduciary capacity, or for embezzlement or larceny
•Debts for willful and malicious injury
•Judgments in wrongful death or personal injury cases arising from your intoxication
•Unscheduled debts
•Debts incurred after filing your case, which weren’t included in your Chapter 13 plan
•Debts that are nondischargeable under other laws, for example amounts owed for certain health education programs
•Interest owed on nondischargeable debts

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Written by Adam Peck

Expertise: Personal Injury

Adam J. Peck, ESQ is a principal with Peck Law Group, APC. In 2008, Mr. Adam Peck received his Juris Doctorate from Whittier Law School where he graduated Cum Laude. His practice is primarily dedicated to representing Elders, Dependent Adults, along with their loved ones and family members, who have suffered horrific personal injuries.