Which of my debts are dischargeable?
In bankruptcy court, it is important to understand which of your debts are dischargeable in court (meaning you will not be responsible for paying them anymore) or which debts are not dischargeable (meaning that you will still be responsible for them after the bankruptcy.
Dischargeable DebtsThe following categories of debts are dischargeable: Credit card bills, Medical bills, Most Judgments, Most Garnishments, and Most Gambling debt.
Non-Dischargeable DebtsThe following categories of debts are NOT dischargeable: Student Loans; Alimony you owe to someone else; Child Support you owe to someone else; Debt you incurred through fraud, embezzlement, or larceny; Luxury purchases made within 3 months before filing; Loans taken within 3 months of filing; Debts you incurred due to your driving while intoxicated (such as personal injury lawsuit or damage to property); Debt to your pension or profit-sharing plan; Traffic tickets; Criminal Restitution; and Debts you did not list in your bankruptcy documents, schedules, papers.
The It-Depends categoriesSome debts may be dischargeable, depending on your circumstances. You should speak with an experienced bankruptcy attorney to determine if your debts in the two following categories may be dischargeable:
1. IRS Taxes: Recent taxes (from the last 3 years) are not dischargeable. However, if your taxes are older than 3 years, you may be able to discharge them in bankruptcy. Before meeting with your bankruptcy attorney, you should obtain your tax transcripts from the years that you owe. An experienced bankruptcy attorney will be able to review those transcripts and determine if your taxes are dischargeable.
2. Property Settlement from a divorce: Property settlements are not dischargeble in a Chapter 7 Bankruptcy Case. However, if you are filing a Chapter 13 Bankruptcy Case, those property settlements may be dischargeable if you successfully complete your Chapter 13 plan. Before meeting with your bankruptcy attorney, you should obtain a copy of your Marital Settlement Agreement and Final Judgment of your divorce. An experienced bankruptcy attorney will be able to review those documents and determine if your property settlement will be dischargeable based on the chapter of bankruptcy you will file.