Nondischargeable Debts In Chapter 7 Bankruptcy
While bankruptcy offers powerful debt relief, it’s essential to know that the process doesn’t eliminate all financial liabilities. Nondischargeable debts remain your responsibility even after completing bankruptcy.
I am Bethlehem bankruptcy attorney John R.K. Solt. With decades of legal experience, I help individuals throughout Lehigh County, Northampton County and eastern Pennsylvania understand their bankruptcy options to restore their financial independence.
Common Nondischargeable Debts
While Chapter 7 bankruptcy typically eliminates credit card debt, medical expenses, personal loans and utility bills, you can’t eliminate certain obligations. Legally enforceable debts you must still repay after bankruptcy include:
- Most student loans
- Recent income taxes (generally those less than three years old)
- Child support and alimony
- Court-ordered restitution
- Debts from fraud or willful misconduct
- Most government fines and penalties
- Homeowners association fees that come due after filing
Some exceptions exist for discharging student loans and income taxes in bankruptcy. For instance, older income taxes might be dischargeable if they meet specific timing requirements.
Consequences Of Nondischargeable Debts
When debts survive bankruptcy, creditors retain their collection rights. This can lead to:
- Continued collection calls and letters
- Wage garnishment
- Bank account levies
- Tax refund interception
- Potential asset seizure
These consequences can undermine the fresh start bankruptcy is designed to provide if you don’t plan appropriately. As an experienced Bethlehem bankruptcy attorney, I can help identify which of your debts are dischargeable, develop strategies to manage nondischargeable debts, explore alternative repayment options and protect your assets to the fullest extent of the law.
Frequently Asked Questions
Here are commonly asked questions regarding debts affected by bankruptcy:
Which debts are nondischargeable in Pennsylvania?
Pennsylvania follows federal bankruptcy law regarding nondischargeable debts, which include child support, alimony, government fines and penalties, and debts from fraud or negligent behavior.
Can I eliminate student loans in bankruptcy?
Most student loans are nondischargeable. However, some can be discharged by proving “undue hardship” through a separate legal process called an adversary proceeding.
What is the legal process to determine which debts are nondischargeable?
By law, most nondischargeable debts are automatically excluded from bankruptcy protection. For others, creditors must file an objection to discharge within specific deadlines.
You Are Not Alone. Contact Me Today!
If you’re struggling with debt, I invite you to schedule a consultation with a lawyer to discuss your options. Even with nondischargeable debts, bankruptcy may still provide significant relief.
Call my Bethlehem law firm at 610-601-5381, or contact me through this online form to learn how I can help ease your financial challenges and work toward a more stable future.
John R.K. Solt, P.C., is a debt relief agency. I help people file for bankruptcy relief under the Bankruptcy Code.