When you’re behind on your credit card payments, behind on your mortgage, and you have other debt surrounding you, bankruptcy is your go-to solution for eliminating most of it and getting back on your feet. However, hiring reputable bankruptcy attorneys in El Cajon, CA is not a cure-all, and not even bankruptcy can eliminate all the debt you’ve managed to gather. That’s why you should know which debt is non-dischargeable in bankruptcy.

Which debt doesn’t get discharged in bankruptcy?

The goal of the two most common types of bankruptcy, Chapter 13 and Chapter 7, is to eliminate as much debt as possible, help you put it all behind you, and ensure a more prosperous financial future for you and your family. However, as we’ve said, no bankruptcy can get rid of every single debt you’ve managed to create over a period of time.

Generally, the Bankruptcy Code names nineteen different types of debt neither one of these two bankruptcies can eliminate. However, some of the debt listed there is very uncommon and therefore unnecessary to discuss. Instead, take a look at some of the most frequent examples of debt which you’ll be unable to discharge through any type of bankruptcy:

  • Child support and alimony
  • Certain types of tax debt, for example liens. On the other hand, you could qualify to discharge some types of local, state, and federal taxes from several years ago.
  • Malicious and willful injury to another individual.
  • Debts regarding a personal injury or death due to the debtor’s improper operation of a vehicle while intoxicated from various substances.
  • Debts an individual intentionally fails to list as part of their bankruptcy filing.

What’s more, during Chapter 7, you’ll still owe cooperative or condominium association fees alongside other non-dischargeable debt.

Which debt is difficult to discharge?

On the other hand, there are certain types of debt either Chapter 7 or Chapter 13 can help you discharge, but with much difficulty. While possible, eliminating these debts requires experience, expertise, and knowledge of the intricacies of the Bankruptcy Code, which means you need adequate legal representation at your side. Some of the difficult-to-discharge types of debt are:

  • Student loans: It is notoriously difficult and complicated to discharge your student loans with bankruptcy. This is only possible in case you and your lawyers prove undue hardship from dependents resulting in, for example, impossibility to maintain a certain minimal living standard.

Also, there are cases in which the court decides to discharge only a portion of your student debt as a relief during your financial difficulties.

  • Income tax debts: Very specific rules apply to discharging tax debt.  Speak to a qualified bankruptcy attorney to determine tax debt dischargeability.
  • Federal taxes: Very specific rules apply to discharging tax debt.  Speak to a qualified bankruptcy attorney to determine tax debt dischargeability.  Even if not dischargeable, there are ways to settle with the IRS for less.

Which reputable bankruptcy attorneys in El Cajon, CA do I hire?

Bankruptcy is the best possible way out of your debt and into a more secure, stable, and promising financial future. However, while different types of bankruptcy can discharge much debt, they cannot take care of everything. That’s what makes learning about the debt not dischargeable in bankruptcy very important. Inform yourself and take your life into your own hands rather than waiting for involuntary bankruptcy to happen.

When you’re ready to file bankruptcy there’s only one name you should have in mind – Chang & Diamond. We’ll assess your current financial predicament and formulate the best possible plan of action to get you out of as much debt as possible and put you back on your feet again. Our goal is to provide you with a hassle-free experience that will yield fast and favorable results. Take your family, visit the Knox House Museum, and let us handle everything. Call us today!