Non Dischargeable Debts in California Chapter 7 Bankruptcy

If you’re feeling buried by your debts and it seems like you’re losing control of your finances, you are not alone.  Taking the next step to regain control of your life can be as simple as having a conversation with a California bankruptcy attorney to inform you about your options.  Unfortunately, there are many misconceptions about bankruptcy, one of them being that all forms of debt are wiped out.  This is not true whether you are filing Chapter 7 or Chapter 13, so it’s worth considering before you move forward with your bankruptcy case.

The debts listed below are those that must be repaid if you file for Chapter 7 bankruptcy.  In the case of Chapter 13, the debts must be fully repaid under the plan you develop for your bankruptcy repayment.  Any secured debts must also be paid if you want to keep that secured property, such as a house or a car.  You may be able to discharge certain student loans, but only if you are able to demonstrate that paying on these loans would constitute a serious hardship for you.  Speak to an attorney to learn more about that process.  Additionally, you cannot discharge any of the following debts:

  • Owed child support and alimony: This includes back child support and other amounts related to supporting a family that have previously been ordered.
  • Debts for personal injury or death cases that resulted from an accident where drunk driving was involved.
  • Violations and fines from traffic and criminal violations.
  • Income tax debts from the last three years and any other outstanding tax debts.
  • Debts that you fail to include in your bankruptcy papers, unless the creditor becomes aware of the bankruptcy case.

The bankruptcy judge also has some say over what can and cannot be discharged.  If a creditor comes forward to challenge your request to discharge certain debts, a judge can deny your request to do so.  These include:

  • Debts that were incurred as a result of fraud
  • Credit purchases of $1,150 or more for any luxury services or goods that were made within sixty days of your bankruptcy filing.
  • Debts that accumulated as a result of malicious injury to another person or another individual’s property.
  • Debts that resulted from larceny, breach of trust, or embezzlement.

A bankruptcy attorney can help you walk through the process of filing and will be able to inform you about what to expect.