If you are dealing with overwhelming debt, you are probably wondering if filing for bankruptcy will get rid of all your debt. Filing for Chapter 7 bankruptcy is a very effective way to get any unsecured debt discharged, giving you more financial freedom. However, there are certain debts that cannot be discharged through a Chapter 7 bankruptcy in Parker and Aurora. Let’s look at some debts that are not dischargeable.
Debts That Can’t Be Discharged in a Centennial Chapter 7 Bankruptcy
Here is a list of debts that are not dischargeable through a Chapter 7 bankruptcy in Centennial and Denver:
Student loans are not typically dischargeable through a Chapter 7 bankruptcy.
Any taxes due within the last 3 years are not dischargeable.
Some Fines and Penalties
It’s important to let your experienced Aurora bankruptcy attorney know about all the fines and penalties that you owe, as some can be included in your Chapter 7 petition.
Any debts that were not included on your petition
It is your responsibility to include any and all debts that are eligible for discharge on your Chapter 7 bankruptcy petition. If you forget or leave any out, they will not be discharged – even if they are eligible.
Debts attained through fraud or false financial statements
If you have any debt that was accrued through fraud, false pretenses or providing false financial statements are not eligible for discharge. This would include buying unnecessary or luxury items, getting cash advances, or just overspending on a credit card within 60 days of filing for bankruptcy.
Debts caused by crime (including restitution)
If you owe restitution through a criminal case, or have debt related to Theft, Fraud, or Embezzlement, these debts are non-dischargeable.
Personal injury or property damage debts
If you are required to pay damages for personal injury or property damage, you can not discharge that debt.
Chapter 7 Bankruptcy in Denver: Is It Worth It?
After reading this list, you may be thinking, “Well, since I can’t get rid off all my debt, what’s the point?” The fact is, while you may still have to deal with some of your remaining debt that was not dischargeable, getting the dischargeable debt off your plate will give you more freedom with your finances. This means that you will be able to make steady payments on the remaining debt because you are no longer juggling that with your credit card debts.