Before you make the decision of whether or not file bankruptcy, particularly Chapter 7 bankruptcy, you should know that you may not be able to get rid of all of your debts. If you file for the sole reason to get rid of those kinds of debts, after your case is closed you may be left in the same, or worse, position as before you filed.
Here are the 10 kinds of debts that Chapter 7 bankruptcy won’t eliminate:
- Most tax debts and debts that were incurred to pay nondischargeable federal tax debts (e.g. using a credit card to pay the IRS).
- Debt for obtaining money, property, services, or credit by means of false pretense, fraud, or a false financial statement, if the creditor files a complaint in the bankruptcy case.
- Debts not listed on the debtor’s bankruptcy petition, unless the creditor knew of the bankruptcy case in time to file a claim.
- Debts for fraud, embezzlement, or larceny, if the creditor files a complaint in the bankruptcy case.
- Denver for domestic support obligations, such as alimony or child support, and certain other divorce-related debts, including property settlement debts. This exception to discharge is somewhat different for Chapter 13 bankruptcies, which may be advised is the debtor has been order to pay her ex-spouse’s debts.
- Debts for intentional or malicious injury to the person or property of another, if the creditor files a complaint in the bankruptcy case.
- Debts for certain fines or penalties.
- Debts for most educational benefits and student loans, unless a court finds that not discharging the debt would impose an undue hardship on the debtor and his or her dependents.
- Debts for personal injury or death caused by the debtor’s operation of a motor vehicle while intoxicated.
- Debts that were or could have been listed in a previous bankruptcy case of the debtor in which the debtor did not receive a discharge.
You can also read about the 12 kinds of debts that Chapter 13 bankruptcy won’t eliminate here. It’s important to know that some debts that you can’t get rid of in Chapter 7 bankruptcy can be eliminated by filing Chapter 13 bankruptcy.
If you have questions about whether or not bankruptcy is an option for you, please come in for a free, no-obligation consultation with an experienced Colorado bankruptcy lawyer. You can make an appointment by calling 303.331.3403 or by using our online scheduling system.