Not All Debts May Be Discharged in Bankruptcy

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

Many people filing for bankruptcy are surprised to find out that not all of their debts are discharged – that is, erased. Certain debts are not eligible for discharge, including:

— Back taxes
— Child support and/or alimony
— Any debts that resulted from a government fine or legal decision – for
example, DUI fines, personal injury suits, damage to the property of
others, unpaid parking tickets, and so on
— Student loans
— Some types of condominium or cooperative housing fees

In many bankruptcy proceedings, the debtor does have a right to challenge which debts are or are not discharged, but so do the debtor’s creditors. A creditor, such as a bank or a credit card company, can object with the court in writing before the deadline set in the bankruptcy notice. If the court finds that the debtor has provided incomplete paperwork, fraudulent records, a failure to account for lost assets, etc., the court can side with the creditor and force the debtor to repay the debt in full. Given that some of the reasons for denying a discharge can be as minor as incorrectly completing paperwork, Californians facing bankruptcy should seriously consider hiring an attorney says Los Angeles Bankruptcy Attorney Steven C. Peck who may be contacted toll free at 1.866.999.9085

The Bankruptcy means test helps to determine for which type of bankruptcy you qualify for. The outcome of a bankruptcy means test will decide whether you can file for Chapter 7 bankruptcy, in which most of your unsecured debts are completely discharged, or a Chapter 13 bankruptcy, in which your bankruptcy attorney works with the court to design a realistic payment plan to get your finances back on track.

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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.