While we all wish that bankruptcy would wipe away debt in its entirety, there are certain limitations under Aurora and Littleton, Colorado bankruptcy law. It’s important to know exactly which debts a Chapter 7 bankruptcy will take care of before filing. You wouldn’t want to be in the same or worse position after filing a Chapter 7 bankruptcy.
Debts Remaining After a Denver Chapter 7 Bankruptcy: Non-Dischargeable Debts
Here are different debts that can’t be eliminated through a Denver Chapter 7 bankruptcy:
Alimony / Child Support – If you have accrued debt from non-payment of court ordered alimony, child support payments, or property settlement from a divorce, you will not be able to discharge this debt under Chapter 7 bankruptcy.
Tax Debts – Most debts accrued from federal and state taxes are non-dischargeable.
Personal Injury DUI– Any debt accumulated from a personal injury or death due to operation of a vehicle under the influence of alcohol or drugs will not be eligible for Chapter 7 bankruptcy discharge.
Student Loans – Debts from student loans will not be dischargeable in a Chapter 7 bankruptcy unless a Denver County Judge finds that the debt imposes an undue hardship on the person filing the bankruptcy. Exceptions like this are why it is so important to have an experienced bankruptcy attorney on your side.
Previous Bankruptcy Debts – Any debts that were listed in a previous bankruptcy case that were found non-dischargeable cannot be added to a new Chapter 7 bankruptcy.
Fraud or Theft – Any debts that were incurred from obtaining money, property or services under false pretenses, fraud, embezzlement, or theft if the creditor files a complaint in the Chapter 7 bankruptcy case.
Undisclosed Debts – Debts not listed in the Centennial Chapter 7 bankruptcy petition are not dischargeable unless the creditor knew about the petition with enough time to file a complaint or claim.
Intentional Injury – Any debts accrued from an intentional or malicious injury to person or property if the creditor files an objection to the discharge of the debt.
Fines – Certain fines and penalties, like Court ordered fines, are non-dischargeable.
Don’t let the list above discourage you. There are many debts that can be discharged under Chapter 7 bankruptcy, making it easier to pay off these nondischargeable debts. Certain debts that are not dischargeable under Chapter 7 bankruptcy are dischargeable a under Chapter 13. Call us today to see what your option are.