When Would You NOT Receive a Discharge in Bankruptcy?
The answer to that question depends on many factors.
Some Debts Automatically Don’t Get Discharged
Some debts automatically don’t get discharged in bankruptcy.
Here are the more common non-dischargeable debts:
- Student loans.
- Child support/alimony and attorney fees for child support/alimony.
- Taxes, unless they meet certain criteria.
- Court fines and criminal restitution orders. Some court fines and penalties can be dischargeable in Chapter 13, but criminal restitution orders are never dischargeable.
- Personal injury caused by drunk driving or under the influence of drugs.
- Debts that were not listed in your bankruptcy, unless the creditor knew about your bankruptcy.
- Debts incurred due to willful and malicious acts that caused personal injury or death.
- Debts denied discharge in a previous case cannot be discharged in Chapter 7 but can be dischargeable in Chapter 13.
Note: The above is not a complete list but merely the most common examples.
Some Debts Won’t Get Discharged if a Creditor Objects and Wins
Some examples are:
- Luxury good purchases of $1,000 (as of April 1, 2019) or more within the 90 days prior to filing bankruptcy.
- Cash advances (e.g., payday loan, lines of credit, etc.) of $1,000 or more (as of April 1, 2019) within 70 days of filing bankruptcy.
- Fraudulently obtained debts or those obtained under false pretenses.
- Debts incurred due to willful and malicious injury to other’s property. These are never dischargeable in Chapter 7 but can be dischargeable in Chapter 13.
- Marital Settlements in a Chapter 13 (if the creditor can convince the judge that the settlement is more in the nature of child support/alimony) are not dischargeable in Chapter 7 bankruptcy but can be dischargeable in Chapter 13.
- Debts incurred to pay non-dischargeable tax obligation (e.g., using a credit card to pay off non-dischargeable taxes) are not dischargeable in Chapter 7 but can be dischargeable in Chapter 13.
Note: The above is not a complete list but merely the most common examples.
The Judge Can Deny an Overall Discharge in Some Situations
For example:
- If the debtor filed a bankruptcy too soon after a previous bankruptcy the debtor might not be eligible for a discharge. There are specific rules about filing too soon after a previous bankruptcy and you should seek the counsel of one of our experienced bankruptcy attorneys for help.
- If creditors, the trustee or the United States Trustee objects to you obtaining a discharge and wins then you won’t receive a discharge.
- If you fail to disclosure your assets, fail to account for lost assets, commit perjury in your schedules or during hearings, or otherwise fail to cooperate with the trustee in administration of the case your discharge could be denied.
Contact one of our experienced attorneys to advise if your debts are dis-chargeable.