When you successfully file for bankruptcy, most of your debts can either be discharged or forgiven, which is the end goal for most people. And while some debts can be wiped out in bankruptcy, others can’t. Debts that can’t be wiped out through a bankruptcy proceeding are called non-dischargeable debts. These include student loans, most federal, state and local taxes, child support, alimony, and money borrowed on a credit card to pay those taxes.
If a creditor objects to a discharge, other debts may also be non-dischargeable. For example, debts from marital settlements or divorces, debts acquired on fraudulent acts, from embezzlement, larceny or breach of fiduciary responsibility.
Texas Bankruptcy Non-Dischargeable Debts
These debts can’t be discharged in either Chapter 7 or Chapter 13 Texas bankruptcies, meaning that the court considers these debts as non negotiable. Even if you complete a Chapter 7 case, you’ll still have to pay these debts. In contrast, with Chapter 13, the debt must be included in the repayment plan. Keep in mind that there are exceptions depending on each case.
Typical Non-Dischargeable Debts
- Student Loans
- Child Support
- Luxury Items Debts
- Court Judgments
- Most Taxes
- Non Reported Debts
Other Debts That Could Be Ruled Non-Dischargeable:
- Divorce Decrees
- Malicious Injury to Individuals or Their Property
If the majority of your debts are non-dischargeable, bankruptcy might not be the right answer for you as you will have to pay them anyway. Contact a reliable bankruptcy attorney to learn about your options.
Get Proper Legal Assistance from Experienced Bankruptcy Lawyers
Do you need assistance filing for bankruptcy? Whether you’re filing for Chapter 7 or Chapter 13, bankruptcy could mean a fresh start for you. At Acker Warren, P.C. you’ll find superior legal advice for bankruptcy cases. We’ll be more than happy to help you out in your path to financial freedom.