answersLogoWhite

0


Best Answer

The reasons for the nondischargability of such debts include: the nature of the debt, policy reasons to protect the creditors (e.g., support obligations for one's family), and debts arising because of the debtor's misconduct.

User Avatar

Wiki User

13y ago
This answer is:
User Avatar

Add your answer:

Earn +20 pts
Q: Why are some debts in a bankruptcy ineligible for discharge?
Write your answer...
Submit
Still have questions?
magnify glass
imp
Related questions

At what point in a Chapter 7 bankruptcy is it considered final with no new debts eligible for discharge?

When you file for Chapter 7 bankruptcy, you are responsible for listing all of your debts. Some debts are generally not dischargable (i.e. child support, most taxes, student loans, secured debts, etc.). When you receive a discharge for dischargeable debts, the discharge generally applies to debts listed in your bankruptcy filing and any subsequent amendments. The discharge does not apply to date incurred after you filed bankruptcy and generally does not apply to debts that you failed to list in the bankruptcy.


Is a debt dischargable?

Some of the debts that cannot be discharged in a bankruptcy are, income tax arrearages (depending upon the time frame), child support, secured debts where the property is not subject to forfeiture, child support, spousal maintenance (in some cases) and all other debt the bankruptcy trustee certifies as being ineligible for discharge. Decisions made by a bankruptcy trustee can be appealed to the court if the filer believes they are not valid.


What is a non-dischargable debt?

Some of the debts that cannot be discharged in a bankruptcy are, income tax arrearages (depending upon the time frame), child support, secured debts where the property is not subject to forfeiture, child support, spousal maintenance (in some cases) and all other debt the bankruptcy trustee certifies as being ineligible for discharge. Decisions made by a bankruptcy trustee can be appealed to the court if the filer believes they are not valid.


What does a bankrupt discharge?

The chapter 7 discharge order eliminates a debtor's legal obligation to pay a debt that is discharged. Most, but not all, types of debts are discharged if the debt existed on the date the bankruptcy case was filed. (If this case was begun under a different chapter of the Bankruptcy Code and converted to chapter 7, the discharge applies to debts owed when the bankruptcy case was converted.) Some of the common types of debts which are not discharged in a chapter 7 bankruptcy case are: a. Debts for most taxes; b. Debts that are in the nature of alimony, maintenance, or support; c. Debts for most student loans; d. Debts for most fines, penalties, forfeitures, or criminal restitution obligations; e. Debts for personal injuries or death caused by the debtor's operation of a motor vehicle while intoxicated; f. Some debts which were not properly listed by the debtor; g. Debts that the bankruptcy court specifically has decided or will decide in this bankruptcy case are not discharged; j. Debts for which the debtor has given up the discharge protections by signing a reaffirmation agreement in compliance with the Bankruptcy Code requirements for reaffirmation of debts.


Can you discharge unpaid payroll taxes in bankruptcy?

Some debts, such as taxes (including payroll taxes, most student loans and unpaid wages) are not forgiven in bankruptcy even if you file, and will not be discharged even if you are given bankruptcy relief of your other debts. And being in arrears in taxes may bar you from getting any bankruptcy relief at all . Talk to an attorney as soon as possible.


What are the differences between bankruptcy options?

Bankruptcy is a federal court process. It is designed to help consumers and businesses eliminate debt or repay debts under the protection of the bankruptcy court. There are two categories of bankruptcy, "liquidation" or "reorganization":Liquidation bankruptcy (or Chapter 7) - a consumer or business asks the court to discharge the debts owed (some debts cannot be discharged). In exchange, the business's assets or the consumer's property is sold (liquidated) and the proceeds are used to pay off the creditors.Reorganization bankruptcy (chapter 13) - involves filing a plan with the bankruptcy court suggesting how you will repay your debt. Some debts must be repaid in full while others require only a percentage or nothing at all.


How do you protect your credit when your ex is going to file bankruptcy?

If your ex files bankruptcy and you are listed on some debts that (s)he wants to discharge, you will become 100% liable instead of 50%. Go through all your debts and make sure that anything in both of your names is paid. If you no longer have any joint debt, an ex filing will not affect your credit.


Where is free information about bankruptcy?

There are two types of personal bankruptcy individuals can file: Chapter 7 is the most common, where most of your debts are wiped clean. A Chapter 7 filing will discharge your debts, except for alimony and child support, federally insured student loans, criminal and traffic fines, state and federal taxes due within the last three years, and debts that resulted from willful malicious acts. Another common bankruptcy filing is Chapter 13 which allows you to pay back your debts on a payment plan, and may also reduce some of your debts such as medical bills.


When filing bankruptcy which chapter eliminates all debt?

It depends. Most any of the types can, or may not. Some considerations are if your speaking of a business (Corporation) or personal bankruptcy, if the debts are secured or not, and how much of what type of assets there are and if any of them are to be maintained after the bankruptcy as determined by the Court and creditors. There is no personal bankruptcy where secured debts or other obligations such as child support arrearages. A chapter 7 is a total liquidation bankruptcy in which the debtor can discharge all debts that are not secured including judgments, liens that have not been "perfected", stop wage garnishment, etc. The petitioner will however be required to relinquish all non exempted property.


Can a person release after 5 year as bankruptcy?

Some countries like Thailand and Indonesia has ruling of auto discharge of a bankruptcy after 3 years.Is there such a rule in Singapore, auto discharge of bankruptcy?If there is, what is the procedure like and for how many years?


What happens when a chapter 7 bankruptcy is discharged?

The discharge prohibits any attempt to collect from the debtor a debt that has been discharged. For example, a creditor is not permitted to contact a debtor by mail, phone, or otherwise, to file or continue a lawsuit, to attach wages or other property, or to take any other action to collect a discharged debt from the debtor. There are also special rules that protect certain community property owned by the debtor's spouse, even if that spouse did not file a bankruptcy case. A creditor who violates this order can be required to pay damages and attorney's fees to the debtor. However, a creditor may have the right to enforce a valid lien, such as a mortgage or security interest, against the debtor's property after the bankruptcy, if that lien was not avoided or eliminated in the bankruptcy case. Also, a debtor may voluntarily pay any debt that has been discharged. The chapter 7 discharge order eliminates a debtor's legal obligation to pay a debt that is discharged. Most, but not all, types of debts are discharged if the debt existed on the date the bankruptcy case was filed. Some of the common types of debts which are not discharged in a chapter 7 bankruptcy case are: a. Debts for most taxes; b. Debts that are in the nature of alimony, maintenance, or support; c. Debts for most student loans; d. Debts for most fines, penalties, forfeitures, or criminal restitution obligations; e. Debts for personal injuries or death caused by the debtor's operation of a motor vehicle while intoxicated; f. Some debts which were not properly listed by the debtor; g. Debts that the bankruptcy court specifically has decided or will decide in this bankruptcy case are not discharged; h. Debts for which the debtor has given up the discharge protections by signing a reaffirmation agreement in compliance with the Bankruptcy Code requirements for reaffirmation of debts.


If an account is closed by a credit grantor why would the card holder continue to make payments after bankruptcy findings are closed?

The card holder is under no legal obligation for the card holder to continue making payments after filing for bankruptcy, unless the case is dismissed without a discharge. There are some who believe that they can improve their credit rating by pay off debts that were discharged in a bankruptcy, but I believe there are better methods to reestablish credit after bankruptcy.