In an ideal world, filing a Chapter 13 bankruptcy in Littleton or Aurora would eliminate all debts. However, there are certain debts that cannot be discharged – meaning you will still be responsible for paying them off, even after your Chapter 13 bankruptcy is complete. It’s important you have realistic expectations of what Chapter 13 bankruptcy can do for you.
Compared to Chapter 7 bankruptcy, Chapter 13 bankruptcy discharges more debts. However, the following types of debt are non-dischargeable in a Centennial Chapter 13 bankruptcy:
Child support and alimony payment debts
If you have been ordered by the family law court to pay child support or alimony (also known as spousal maintenance), then any debt you carry from non-payment or money owed in the future is not dischargeable in a Chapter 13 bankruptcy.
Student loan debts
Any debt incurred from educational obligations, like student loans, are non-dischargeable unless the bankruptcy court rules that carrying the debt causes an undue hardship to the debtor. Sometimes, a judge will allow a discharge of the interest on the loan, but you will still be responsible for paying off the principle.
Debts for personal injury or death resulting from driving under the influence
If you are held responsible for the injury or death of another after driving while intoxicated, then any restitution or civil judgements that are ordered related to the personal injuries will not be discharged in a Chapter 13 bankruptcy.
Restitution or fines resulting from a criminal case
Any restitution or fines related to criminal cases (even traffic tickets) are not dischargeable.
Specific tax debts
Certain tax debts, like recent income tax debts, are not dischargeable as they are viewed as priority debts and are required to be paid in full through a Chapter 13 payment plan.
Debts for damages caused by malicious or willful intent
If a you are sued for the personal injury or death of another due to willful or malicious intent, then the judgement ordered by the judge is nondischargeable.
Debts not listed on the Chapter 13 bankruptcy petition
You are required to list all creditors and debts on your bankruptcy petition in order to serve them with notice that you are filing for bankruptcy. If a creditor is left off the list, then the debt owed is non-dischargeable.
While there may be other debts that are not dischargeable under a Chapter 13 bankruptcy, these are the most common.