Bankruptcy can be a confusing process. Chapter 7 bankruptcy and other types are often surrounded by myths and misinformation. It is important for anyone in Florida who is considering filing Chapter 7 bankruptcy to understand what kind of debts may not be discharged, meaning that the filer will still be liable for those debts. Knowing what debts aren’t discharged is just as important as knowing what debts are.
When a bankruptcy case is filed, there is a list of creditors submitted. Any debts not on that list may be subject to repayment. Certain taxes are also not able to be discharged and still need to be paid. As far as the government is concerned, any kind of fines or penalties imposed by the government will still have to be paid.
There are debts related to family law that are also not able to be discharged. These include both alimony and child support. Anyone filing will still have to abide by those obligations. Student loan debt typically still has to be paid and is not discharged under Chapter 7 bankruptcy.
For those in Florida considering filing for Chapter 7 bankruptcy, there are certain provisions that differ from other types. It may be helpful to outline the differences to help you decide which kind of bankruptcy, if any, is the best for your given situation. Once you know which debts may not be discharged, it may be easier to get a clearer picture of what the benefits of filing for Chapter 7 bankruptcy may be.
Source: bankruptcy.findlaw.com, “Debts that Remain After a Chapter 7 Discharge,” July 28, 2014