Nondischargeable Debts in Bankruptcy
If you’re thinking about filing bankruptcy, you may have learned that certain debts are nondischargeable. If so, you’ve likely begun to wonder if your most pressing debts are dischargeable. This list is a guideline for what kinds of common debts are nondischargeable in bankruptcy. Keep in mind that there may be exceptions in the cases listed below and that there are other cases in which a debt may be declared nondischargeable. Only an experienced bankruptcy attorney can truly help you determine whether your debts can be discharged. If you would like to get an idea of what debts are nondischargeable before you decide to declare bankruptcy, here’s a list of the 9 most common nondischargeable debts:1. Alimony and Child Support
The most common debts that people ask if they can discharge are alimony and child support debts. These are often the most overwhelming causes of debt for people, so it’s disappointing to find out that they are not dischargeable. There is some good news, however. If you go with a Chapter 13 Bankruptcy, there are provisions that allow you an extended period of time to pay off nondischargeable debts such as child support arrears and alimony.2. Debts from Credit Obtained under Fraudulent Means
If you gained an asset, money, credit refinancing, or the like under fraudulent means, any debt that you’ve incurred related to it is nondischargeable. Fraudulent means may include lying on a document, deceit, or actual fraud.3. Debts Owed due to Criminal Actions or Lawsuits
Certain criminal actions may lead you to owe money for damages, and that money owed may turn into debt. Nondischargeable debts in this category include damages and restitution payments owed for:- Committing embezzlement or larceny
- Intentionally causing property damage or injury
- Causing injuries or death while operating a vehicle under the influence of drugs or alcohol
- Fraud committed at a banking institution or credit union
- Committing fraud, manipulation, or deceit when purchasing stocks, bonds, or other securities