Filing Bankruptcy Online: Non-Dischargeable Debt
Although most debts if not all debts may be discharged in a Chapter 7 bankruptcy, there are some debts which may not be discharged. Today, our experts at ZocLaw.com highlight filing bankruptcy online non-dischargeable debt.
The experts at ZocLaw.com explore some of the reasons why certain debts are not dischargeable below.
Filing Bankruptcy Online – Non-Dischargeable Debt : Barriers
There may be a few barriers to discharging your debt.
If you fail to follow bankruptcy procedures and court rules, the court may refuse to grant a Chapter 7 discharge. In this event, the court may disallow your Chapter 7 petition in its entirety, which essentially means that you will not be able to discharge even your dischargeable debt.
There are 19 categories of non-dischargeable debt listed in the bankruptcy code. For public policy reasons, Congress has decided that these 19 categories of debts may not be discharged. In the majority of these categories the debts are outright non-dischargeable, unless extraordinary circumstances exist in a particular case. Essentially, this means that when you get your discharge at the end of your case, the creditor may pursue collection activities against you.
However, for several of the 19 categories, a creditor has to first successfully challenge the discharge of the debt during the bankruptcy case. Thus if a creditor does not raise an objection to the discharge of a debt, or it does but is unsuccessful, the debt will be discharged.
Filing Bankruptcy Online Non-Dischargeable Debt: Denial of a Chapter 7 discharge
A filer in a chapter 7 bankruptcy does not have an automatic right to a discharge of his or her debts. The provisions contained in the bankruptcy code must be adhered to by the debtor in order to receive a discharge. The bankruptcy code, in particular section 727(a) highlights a list of reasons why the court may deny a chapter 7 bankruptcy. These mainly deal with a debtor’s obligation to abide by certain rules or bankruptcy procedures. Failure by the debtor to abide by these rules or procedures may result in a creditor, the bankruptcy trustee, or the U.S trustee objected to the entire chapter 7 discharge. If this happens, it is possible that none of your debts will be discharged even those that are dischargeable.
The following is a list of the circumstances where a court may deny a chapter 7 discharge:
- You fail to provide requested ta documents,
- You fail to complete a course on financial management,
- You attempt to defraud or hinder your creditors by transferring or hiding property,
- You destroy or hide books or records,
- You commit fraudulent acts with respect to your bankruptcy case for example perjury,
- You cannot account for lost assets,
- You breach a court order,or
- You have previously filed a bankruptcy case and obtained a discharge within specific time frames, this depends on the type of bankruptcy that is filed.
Filing Bankruptcy Online Non-Dischargeable Debt: What debts are always non-dischargeable?
If a debt falls into one of the prescribed categories in terms of the bankruptcy code then the debt is deemed non-dischargeable. If the debt falls into this category, a court hearing is not necessary to determine the dischargeability of the debt.
However, if a debtor can demonstrate extraordinary circumstances to take precedent over public policy, then the debt may be discharged.
Filing bankruptcy online non-dischargeable debt:
- Any debts that a filer fails to list on the bankruptcy petition or include on the mailing list, unless the creditor had actual notice or knowledge that the debtor has filed for bankruptcy.
- Certain taxes,
- Debts for alimony, child support or spouses,
- If a debt owed to a spouse or a child which arose out of a divorce or separation,
- Debts for fines and penalties owed to government agencies,
- Student loans (with a few exceptions)
- Debts incurred by the debtor for personal injury as a result of driving in an intoxicated state,
- Debts due to certain tax-advantaged retirement plans,
- Debts for certain condominium or cooperative housing fees (such as homeowners association fees)
- Attorney fees in child custody and support cases,
- Court fines and penalties, including criminal restitution.
If a creditor successfully challenges the dischargeability of a debt that is not automatically capable of being discharged, then the debt will not be discharged and accordingly the creditor may take collection actions against the debtor.
It is important to consult with an experienced bankruptcy attorney when determining whether your debts are dischargeable or not.