What debt can’t be discharged when filing for bankruptcy?
What debt can’t be discharged when filing for bankruptcy?
Bankruptcy is one of the most important financial steps that a person can take to clear their debts and restore their credit. Knowing what you are allowed to get rid of and what will remain is crucial to making the right decision.
Bankruptcy law protects certain debts, like child support and taxes, but there are some debts that you can’t discharge. Here are a few debts that you can’t discharge when filing for bankruptcy. These include:
- Money owed as a result of a personal injury or medical malpractice lawsuit
- Money owed because of domestic support obligations, like alimony, child support, and maintenance
- Taxes (federal, state, and local)
- Student loans
Debt that people have incurred through fraud or in order to perpetrate a crime (such as money launderers) is not subject to discharge when filing for bankruptcy. People who want to bankrupt their credit card debts may be surprised to learn that they are still on the hook for them. This is because credit card debt is considered by the law to be consumer debt, which is different from business debt, and therefore is not subject to the same protections. Furthermore, money spent on gambling or drugs isn’t eligible for a bankruptcy discharge, either.
Debts for future medical care, money owed for damages caused in the past, and debt that you intentionally incurred to pay for a crime are all examples of debts that cannot be discharged through bankruptcy.
If you have questions about whether your debt may be eligible to be discharged, speak with a Bankruptcy Attorney, we have the Best Attorneys in Utah or Please call this law firm for free consultation.
Ascent Law LLC
8833 S Redwood Road Suite C
West Jordan UT 84088
(801) 676-5506
