3 Types Of Debt That Don't Go Away In Bankruptcy

TL;DR

Learn about the taxes, student loans, and domestic support obligations that are not dischargeable in a Chapter 7 bankruptcy.

Transcript

hey everybody welcome to the consumer warrior youtube channel in this video today i'm going to talk about the three types of debts that typically don't go away if you're needing to file for a chapter 7 bankruptcy if this is your first time here on my youtube channel please go ahead click subscribe check on that little bell that way you'll be notifi... Read More

Key Insights

• 🚱 Taxes, especially recent or non-income taxes, are unlikely to be discharged in Chapter 7 bankruptcy.
• 🧑‍🎓 Student loans, both federal and private, are generally not dischargeable, but recent cases have shown some leniency for extreme financial hardship.
• 👶 Domestic support obligations, including child support and alimony, are typically non-dischargeable.
• 🤱 Attorney's fees related to divorce proceedings can also be considered domestic support obligations and may not be dischargeable.
• ❓ Consulting a bankruptcy attorney is crucial to understand the specific circumstances and potential options for discharging debts.
• 🪡 Chapter 7 bankruptcy provides relief for many debts, but certain obligations will still need to be addressed after the bankruptcy process.
• 👻 The bankruptcy code may change in the future, possibly allowing for the discharge of student loans.

Questions & Answers

Q: Can any taxes be discharged in Chapter 7 bankruptcy?

While most taxes are not dischargeable, older income taxes that meet specific criteria can be eliminated. It's best to consult a bankruptcy attorney for a proper evaluation.

Q: Is there any hope for discharging student loans in bankruptcy?

Student loans are presumed to be non-dischargeable, but in certain cases where hardship can be proven, they may be discharged. However, this process often requires an adversarial proceeding and should be discussed with a bankruptcy attorney.

Q: What types of debts fall under domestic support obligations (DSOs)?

DSOs include past due child support and alimony. In some cases, even attorneys' fees related to divorce proceedings can be considered DSOs and may not be dischargeable.

Q: Do all debts survive a Chapter 7 bankruptcy discharge?

No, only certain types of debts, such as taxes, student loans, and domestic support obligations, are generally not dischargeable in Chapter 7 bankruptcy.

Summary & Key Takeaways

• Taxes, especially recent or non-income taxes, are generally not dischargeable in Chapter 7 bankruptcy, although there are exceptions for older income taxes.

• Student loans, both federal and private, are presumed to be non-dischargeable in bankruptcy unless hardship can be proven.

• Domestic support obligations, such as child support and alimony, are typically not dischargeable in Chapter 7 bankruptcy, and sometimes even attorney's fees can fall under this category.