Chapter 7 bankruptcy is a powerful tool to help indebted individuals liquidate large amounts of debt, especially if they lack the income to make their monthly payments. In most circumstances, it will allow a debtor to discharge most unsecured debts, particularly credit card debt. On the other hand, if a debtor stops paying on a secured debt the creditor can take the security, such as a house for an unpaid mortgage. According to the form discharge order available at the U.S. Court’s Web site, there are, however, 10 debts that the order does not discharge.
(1) Debts for most taxes
(2) Debts incurred to pay nondischargeable taxes
(3) Debts that are domestic support obligations
(4) Debts for most student loans
(5) Debts for most fines, penalties, forfeitures, or criminal resolution obligations
(6) Debts for personal injuries or death caused by the debtor’s operation of a motor vehicle, vessel, or aircraft while intoxicated
(7) Some debts which were not properly listed by the debtor
(8) Debts that the bankruptcy court specifically has decided or will decide in this bankruptcy case are not discharged
(9) 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
(10) Debts owed to certain pension, profit sharing, stock bonus, other retirement plans, or to the Thrift Savings Plan for federal employees for certain types of loans from these plans
Notice how the form discharge order hedges itself with terms like, “some debts,” or “most debts”? That’s because there are almost always exceptions for individual debts, like taxes or student loans. Consequently, the list in the form order is a rough outline of what people can expect to not discharge. It is not, however, absolute, and a consultation with an experienced Las Vegas bankruptcy lawyer will help you determine what your options are with your debts.
For more questions about bankruptcy in Las Vegas, please feel free to contact an experienced Haines & Krieger Las Vegas bankruptcy attorney for a free initial consultation. Call us at 1-702-880-5554 to set up your free consultation.