Debts that CAN be discharged under chapter 7
bankruptcy include:
- Attorney Fees (except child support and alimony awards);
- Civil court judgments (unless based on fraud);
- Collection agency accounts;
- Credit card charges;
- Dishonored checks;
- Medical bills;
- Non-federally insured student loans;
- "Open Account" charges (except extended payment charges);
- Past due rent(s);
- Repossession deficiency balances;
- Revolving Charge Accounts (except extended payment charges);
- Social Security overpayments;
- Unsecured personal (signature) loans;
- Utility bills (past due amounts only); and
- Veterans Assistance loans and overpayments.
Debts that CANNOT be discharged (Non-Dischargeable) under chapter 7 bankruptcy include:
- Individual income taxes that have been assessed within five (5) years of the filing, but remain unpaid. (Older taxes are dischargeable).
- Federal income taxes due when no return was filed or a fraudulent return was filed;
- Attorney fees (child custody and support cases);
- Debts incurred by the use of false financial statements or other false pretenses;
- Court fines and penalties, including criminal restitution;
- Alimony, maintenance and child support arrearage;
- Unscheduled debts (any debts that the debtor fails to schedule on the bankruptcy petition or include on the mailing list);
- Credit card purchases over $1,075 for luxury goods or services when incurred within 60 days of the filing of the bankruptcy;
- Debts arising from a judgment incurred from a DWI/DUI conviction;
- Damages arising from willful or malicious injury to property or persons;
- Federally insured student loans (a hardship exception may allow a debtor to avoid certain educational loans);
- Cash advances on credit cards within 60 days of the bankruptcy;
- Debts arising from fraud or embezzlement or from the misuse of funds when the debtor was acting as a fiduciary. (Example: Embezzlement of money from a trust fund over which you have control);
- Automobile purchase contracts;
- Credit card charges for payment of taxes to the IRS;
- Department store charges for appliances, furniture, etc.;
- Home mortgages;
- Medical malpractice judgments;
- Purchase contracts for personal property (furniture, computers, appliances, TV's, etc.);
- Mobile home purchase contracts;
- Debts not listed on debt schedules and/or mailing list;
- Home mortgages;
- Excise, custom and trust fund taxes;
- Home Owners association fees (fees due after filing, if debtor resides on the property).
The above are examples only. There may be other debts that are non-dischargeable, always check the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 and with the clerk of the court of your local district to be sure.
IMPORTANT NOTE! Under the new law, if ypou fail to meet the financial requirments of the "Means Test" and you still intend to file bankrupotcy, then you will be forced to file under Chapter 13 bankruptcy.
Filing Chapter 7
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