Non Dischargeable Debts in Chapter 7 Bankruptcy
Bankruptcy is the last option which usually remains in the list of debtors when they are knee deep in debts. In US however the recession has left people’s finances in an abysmally low state and having found no ways to continue dealing with their financial discrepancies, people sought to file for bankruptcy. According to a prominent debt settlement lawyer, bankruptcy does not cause that much damage as it is normally portrayed. In certain circumstances when the financial condition of an individual reaches a situation of deep turmoil filing bankruptcy becomes inevitable. However there are certain debts that are not dischargeable under Chapter 7 bankruptcy filing: •
All debts that are related to court judgments and criminal activity cannot be dischargeable. Medical bills that have accumulated due to any reasons are not dischargeable as well.
Taxes that have fallen due within the last three years are non dischargeable.
Student Loans that have remained in the continual repayment status for seven years in a row.
Court will not discharge debts that are accounted as illegal e.g. if you have fallen on the payment of your credit card account within 60-90 days of filing bankruptcy, it is not going to fall in your non dischargeable accounts.
Alimony and child support debts are by no means dischargeable unless the case has been sorted out and the other party agrees to it.
If you have incurred dischargeable debts e.g. opting for a cash advance on one credit card in order to pay off the other is non dischargeable .
In short all debts that have not been included in the petition of bankruptcy are non dischargeable. Those consumers who decide on filing bankruptcy should know beforehand that it is a turning point as far as the financial status of an individual is concerned for, he may experience tumbling finances along with a bad credit report for years to come, followed by some debts that may still be non dischargeable. Contrary to what the renowned debt settlement lawyer must have said, bankruptcy results in more scars in the credit report of an individual than anything else.
Published on Nov 30, 2010
Debt Settlement has proved to be the most popular mode of getting relief from debts. In some cases it can reduce your debts chiefly with utm...