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Dischargeable & Non-dischargeable Debts in Bankruptcy

One of the biggest and most notable benefits of bankruptcy is the fact that you can permanently get rid of your debt. There are rules, however, on which debts can and cannot be discharged through bankruptcy. Below you’ll find a guide to which debts are dischargeable by bankruptcy, as well as those considered non-dischargeable.

Dischargeable Debts

The two main chapters of bankruptcy that people tend to file for are Chapters 7 and 13. There are different advantages in filing for each chapter, however, here is a list of debts that are able to be wiped out by both Chapters 7 and 13:

  • Credit card debt
  • Personal loans
  • Medical debt
  • Lawsuit judgments against you
  • Debt resulting from most car accidents
  • Obligations under leases and contracts
  • Promissory notes

There are other debts that are set aside just for Chapter 13 debtors:

  • Court fees
  • Marital debts stemming from divorce (excluding support debts)
  • Condo, coop, and HOA fees
  • Retirement plan loan debts
  • Debts that were unable to be discharged in a previous bankruptcy

Non-dischargeable Debts

There are some debts that simply are not allowed to be forgiven even through bankruptcy. This can stem from the fact that a discharge is just not available for a certain type of debt, or a creditor was able to argue against a discharge of your obligations.

Debts that can never be discharged:

  • Child support
  • Alimony
  • Criminal fines
  • Certain taxes
  • Debts rising from injuring or killing someone while driving under the influence

Debts that a creditor can argue against:

  • Debts gained from willful malicious acts
  • Debts incurred from fraud
  • Debts gained from crimes such as embezzlement, larceny, or breach of fiduciary duty
  • Any debt or creditor that you do not include in your bankruptcy papers

There are also debts that you can argue to gain relief from. The most common example of this type of debt is student loans. To get your student loans discharged, you must successfully prove to the court that you would reasonably not be able to repay your debts.

Contact Our Knoxville Bankruptcy Team Today

We understand the struggles that come with bankruptcy and the hostile position that creditors take during the proceedings. We are committed to a compassionate and personalized approach to help get out from under your debt and back on your feet for good. You don’t have to go at it alone, we’ve got your back.

If you have any questions regarding whether your debts can be discharged through filing for bankruptcy, do not hesitate to contact us today through our website, or give us a call at (865) 328-7993!