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A Brief Overview of Nondischargable Chapter 7 Bankruptcy Debts

This article considers some of the debts that cannot be discharged by filing for Chapter 7 bankruptcy protection. It also provides a brief explanation why you may not discharge these debts during the Chapter 7 bankruptcy process.

Bankruptcy Attorney Tobias Licker

Attorney for Bankruptcy, Chapter 7 and Chapter 13

Many St. Louis debtors think that all of their debts can be discharged by filing for Chapter 7 bankruptcy. This assertion is false because the United States Bankruptcy Code features provisions that clearly describe debts that are not allowed to be discharged by filing for Chapter 7 bankruptcy. These provisions were established to prevent people from escaping certain financial obligations that are enforceable by a court or government agency.

To see why this is the case, let’s take a look at a few of the debts that can’t be discharged by filing for Chapter 7 bankruptcy protection.

–Domestic Support Obligations:

Domestic support obligations such as child support and alimony payments are not discharged during the bankruptcy process. The reasons behind this rule are complex. As a result, be sure to visit a St.Louis bankruptcy lawyer or a St. Charles bankruptcy attorney for more information. They can help you understand why these obligations are nondischargeable during the bankruptcy process.

–Civil Fines & Restitution Payments:

Missouri debtors may not discharge civil fines that were imposed by a court or federal agency as a punishment for breaking a law. This is the case because it would defeat the purpose of imposing the fines as a form of punishment. The same reasoning applies for restitution payments you must pay as a consequence of a criminal verdict filed against you in a federal court.

–Some Tax Debts:

For example, tax debts that are incurred as the result of fraud are not dischargeable. Moreover, business taxes such as payroll taxes, excise taxes and most customs duties are not dischargeable. Business taxes are not dischargeable during the Chapter 7 bankruptcy process because they are not considered to be a consumer debt that can be governed by consumer bankruptcy laws.

–Unlisted Debts:

Debts that are not listed on your Chapter 7 bankruptcy petition might not be discharged depending on the case law of your district. In the Eastern District of Missouri for example, not listed debt is not discharged in asset cases, but is discharged if the trustee did not recover any assets. As a result, we highly recommend that you visit a St. Charles bankruptcy attorney or a St. Louis bankruptcy lawyer to go over your bankruptcy petition. It’s a good idea to visit these bankruptcy lawyers because they can help you review your creditor schedule to ensure you have listed all of your debts and creditors on your Chapter 7 bankruptcy petition. Most bankruptcy attorneys will download your credit report for you, often for a fee the attorney has to pay to the credit report provider.

–Finally, you may not discharge a debt if your creditor successfully objects to its discharge. Creditors may only collect on a dischargeable debt if they file a motion and prove that the debt was somehow incurred by fraud, misrepresentation, or by an intentionally malicious act. Proving this can take some time and effort. As a result, most creditors don’t bother to try to object to a debtor’s discharge request unless it involves a significant amount of money.

However, please ask a St. Louis bankruptcy lawyer or a St. Charles bankruptcy attorney if you are experiencing problems with creditors who object to your discharge request. They can help you find ways to resolve this problem that can help you complete your Chapter 7 bankruptcy petition successfully.

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