The following list will give you some of the common items that cannot be discharged or can be challenged by the lender. Plus, the law changes in 2005 amended some of the limits on credit purchases within a time frame.
Most unsecured debt is erased in a bankruptcy
except for:
- Child support and alimony
- Debts for personal injury or death caused by your
drunk driving - Student Loans
- Income tax debt
In addition, the following debts may be declared non-dischargeable by a bankruptcy judge in Chapter 7 if the creditor challenges your request to discharge them. These debts may be discharged in Chapter 13. You can include them in your plan, and at the end of your case, the balance is wiped out:
1. Debts you incurred on the basis of fraud, such as lying on a credit application, credit purchases of $1,225 or more for luxury goods or services made within 60 days of filing, loans or cash advances of $1,225 or more taken within 60 days of filing.
New Bankruptcy Law taking effect on October 17, 2005: Debts you incurred on the basis of fraud, such as lying on a credit application, credit purchases of $500 or more for luxury goods or services made within 90 days of filing, loans or cash advances of $750 or more taken within 70 days of filing.
2. Debts from willful or malicious injury to another person or another person's property, debts from embezzlement, larceny or breach of trust.
3. Debts you owe under a divorce decree or settlement unless after bankruptcy you would still not be able to afford to pay them or the benefit you'd receive by the discharge outweighs any detriment to your ex-spouse (who would have to pay them if you discharge them in bankruptcy).
Always verify with your state if they have any supplements that differ from this list. If you hired an attorney they should have this covered.
