Twelve Types Of Debts Chapter 13 Bankruptcy Won’t Eliminate

Chapter 13 Bankruptcy May Not Get Rid Of Your Debts

Before you decide to file bankruptcy, you should know that there are some kinds of debt that bankruptcy simply won’t eliminate. If you file without first educating yourself, you could be left in the same, or worse, situation as before you filed.

While Chapter 13 bankruptcy will get rid of more types of debts than Chapter 7 bankruptcy, here are 12 kinds of debts that Chapter 13 bankruptcy won’t get rid of:

1. Debts that were paid outside of your Chapter 13 plan and not covered in the plan,
2. Debts for domestic support obligations, which includes debts for child support and alimony,
3. Debts for death or personal injury caused by operating a motor vehicle while intoxicated,
4. Certain tax debts,
5. Debts for restitution or criminal fines resulting from the conviction of a crime,
6. Debts for fraud, embezzlement or larceny,
7. Debts for student loans or educational obligations unless the bankruptcy court rules that not discharging the loans or obligation would impose an undue hardship,
8. Debts for damages caused by willful or malicious conduct,
9. Installment debts (e.g. car loans) whose last payment is due after the completion of the Chapter 13 plan,
10. Debts incurred while the plan was in effect that were not paid under the plan,
11. Debts owed to creditors who did not receive notice of the Chapter 13 case, and
12. Long-term debts (e.g. home mortgages) upon which payments were made under the pan.

If you have questions about whether Chapter 13 bankruptcy will eliminate your debts, we hope you’ll come in for a free, no-obligation consultation with an experienced Colorado bankruptcy lawyer. You can call 303.331.3403 to schedule a consultation or use our online scheduling system.