Many people assume that all of their debt is eligible to be eliminated in bankruptcy, but there are a variety of debts that are non-dischargeable. Thus, before you decide to seek bankruptcy protection, it is important to understand how your individual debts will be treated.
Although a Chapter 13 filing typically allows you to get rid of a wider variety of debts than a Chapter 7 filing, there are 12 types of debts that it will not eliminate:
- Debts that are not paid through or included in your Chapter 13 repayment plan
- Domestic support obligations, including debts for child support and alimony
- Debts resulting from a death or personal injury caused by operating a vehicle while intoxicated,
- Certain taxes
- Criminal fines or debts for restitution
- Debts related to acts of fraud, larceny or embezzlement
- Student loans, unless an “undue hardship” is proven
- Debts that are related to court-ordered damages caused by willful or malicious conduct
- Certain debts paid in installments whose final payment is not due until after the Chapter 13 plan is completed
- Any debts incurred while the plan is in effect that are not paid under the plan
- Certain debts that are owed to creditors who were not properly notified of the bankruptcy filing
- Long-term debts, such as mortgages, upon which payments were made under the plan, but that were not paid in full
If you are considering filing for bankruptcy protection, let us review your individual circumstances and help you understand how your debt will be treated in your case.
If you are considering filing for bankruptcy protection, let us help. We understand how important your bankruptcy case is to you, and we will handle it with the discretion and dedication that have become our calling cards. Contact the Milwaukee bankruptcy attorneys of the DeLadurantey Law Office, LLC today by calling 414-377-0518. Like us on Facebook.