Non-Dischargeable Debt in a Texas Bankruptcy
Whether a debt is dischargeable in a bankruptcy depends upon whether one files for liquidation under Chapter 7 or restructuring of debt under Chapter 13. However, certain types of debt are not dischargeable regardless. If you are considering bankruptcy as an option, it is in your best interests to work with a College Station bankruptcy lawyer in order to determine what suits your specific needs, and which debts you can remove.
Rationale behind Certain Debts Being Non-Dischargeable
Most of the exceptions to bankruptcy discharges exist to protect the public interest. For instance, a person convicted of a felony who is ordered to pay restitution cannot discharge this debt. A College Station bankruptcy lawyer will work with you to determine which, if any, of your debts cannot be discharged, but the following partial list should provide you with a fair idea of what is allowed and what is not.
Examples of Debt that Cannot Be Discharged
Non-dischargeable debts include:
- Most Taxes: Under very limited circumstances taxes can be discharged, but this is unusual. If you owe state or federal tax, you will likely not be able to discharge this debt. In fact, any credit card charge used to pay taxes cannot be discharged.
- Child/Spousal Support Debt: If a family court ordered you to pay monthly support, you will absolutely not be able to discharge any debt incurred due to nonpayment.
- Student Loans: It is rare that a student loan is deemed dischargeable. A College Station bankruptcy lawyer understands that you may feel this is unfair, given the often enormous debt students are burdened with after finishing school nowadays, but nonetheless, the law will not bend in this regard.
- Personal Injury Claims from Drunk Driving: If you were successfully sued for injuring someone while operating a motor vehicle intoxicated, this debt will not be dischargeable, regardless of the financial burden it places on you.
- Non-Reported Debt: When you file bankruptcy you are required by law to list all debts. The purpose of this is not simply to help you get out of paying the debt; it is to provide creditors with notice so that they can file a proof of claim. Failure to report a debt is a federal crime; as such, it is non-dischargeable.
Contact a College Station bankruptcy lawyer for Further Assistance
If you need assistance with filing for bankruptcy protection, a College Station bankruptcy lawyer at Peterson Law Group will be happy to work with you. We will provide you with quality legal assistance and help you through this difficult matter. Call to arrange a consultation today at 979-703-7014.