Non-dischargeable Debts In Bankruptcy

: Chris Lee Law Firm

  Filed under: Debt

There are some debts that do not qualify for a bankruptcy discharge. Does this mean they can’t be managed? The answer is, not necessarily. There are some ways to handle debts that cannot be discharged in bankruptcy.

Difficult Debts

Student loans, some tax debts, and domestic support obligations are all common examples of debt that do not meet the eligibility criteria for bankruptcy. However, this a generalized statement and there are exceptions to every rule.

The rules for discharging a debt are complicated. For instance, tax debts can be discharged in bankruptcy if the debt meets a very specific rule of requirements. Student loan debts are also denied in most cases, but can be accepted under strict circumstances. In other words, the rules for what qualifies for a debt discharge are highly specific to every person’s financial situation and, ultimately, the discretion of the court.

If a debt is still considered non-dischargeable, it doesn’t  mean that there isn’t any benefit from the bankruptcy process. Even if a debt is not going to be resolved in the bankruptcy process, you can still find protection from creditors, collections and unpleasant consequences like wage garnishment in the bankruptcy process. Bankruptcy can also put a stop to liquidation, repossession, and prevent penalty fees from accruing. Further, resolving other sources of debt in bankruptcy can free up income to be allocated to your non-dischargeable debts after your case is complete.


Are you a candidate for bankruptcy?
Would you like to find out if bankruptcy is the right option for you? Try our Free Online Bankruptcy Evaluation. 4 easy steps to see if bankruptcy could be the right option for you!
  • Step 1
  • Step 2
  • Step 3
  • Step 4
Please Select Each Box That Applies To You
Creditor Harassment
Loss of Income
Foreclosure
Disability or Illness
Current Expenses
Auto Loans
Credit Cards
Medical Bills
Payday Loans
Do you have any additional information you would like to share?
Contact Information