Filing for Chapter 7 bankruptcy can be an effective way to resolve serious debt issues. However, it’s important for people to understand that not all types of debt can be wiped away via these cases. In fact, depending on the nature of people’s debt obligations:
- They may end up still carrying some significant debt after a bankruptcy case;
- Understanding this upfront can be essential to taking the right steps now to reign in the persisting debt and get a financial situation back on track.
Debts that Cannot Be Discharged via Chapter 7
In general, the following types of debt are usually never dischargeable via a Chapter 7 bankruptcy case:
- Debts associated with child support and/or spousal maintenance payments
- Restitution-related debts and other debt owed to a government agency as a penalty (e.g., fines)
- Student loan debts (though there may be a few rare exceptions)
- Certain tax debts
- Debts related to certain personal injury verdicts (such as a sum someone has to pay as a result of being sued for causing a drunk driving accident).
Nondischargeable Debts in Bankruptcy: Other Ways Debt May Become Nondischargeable
While the above debts are typically never dischargeable via Chapter 7 bankruptcy, in some cases, a court may refuse to discharge other debts a consumer is carrying. In fact, just because someone files for Chapter 7 does NOT necessarily mean that all of his unsecured debts will be discharged.
Courts may be inclined to deny a discharge of otherwise dischargeable debts if or when a bankruptcy petitioner has:
- Not provided the required documentation (e.g. tax returns, etc.) to the court
- Not fulfilled the credit counseling requirement of bankruptcy
- Committed any type of fraud related to the bankruptcy case
- Violated any court order related to the bankruptcy case
- Been granted a discharge of debt in a recent previous bankruptcy case.
Denver Bankruptcy Lawyer at Garcia & Gonzales, P.C.: We Can Help You
Are you looking for real relief from serious debt? If so, you can trust an experienced Denver bankruptcy lawyer at Garcia & Gonzales, P.C. to provide you with experienced help, honest answers and the highest quality legal services. With more than five decades of combined legal experience, our skilled attorneys have the legal knowledge, skills and insight you can rely on to help you favorably resolve your debt issues and obtain a financial fresh start.
Serving individuals, families and businesses throughout the Denver and Colorado since 1977, our attorneys can always be relied on to:
- Develop innovative solutions to unique financial issues
- Work diligently to help you achieve the best possible outcomes to your financial issues.
Let’s Discuss Your Debt Relief Options – Contact Us Today
To learn more about your best debt relief options, as well as how we can help you, contact us today by calling (303) 839-8888 or by emailing us using the drop-down contact form at the top of this page.
When you contact us, you will communicate directly with one of our attorneys, not a paralegal or legal assistant. We welcome Spanish-speaking individuals to contact us also – hablamos Español.