Filing for bankruptcy is not easy as gaining control of your finances in this day and age is quite a struggle. Filing for bankruptcy gets most debts discharged so that you may have a fresh start.
Child support, past due alimony, debts for many guaranteed educational loans or government funded or benefit over-payments come under debts that cannot be cleared by bankruptcy. Such debts fall under non-dischargeable debts. Other types of debt that fall under non-dischargeable debts are those arising from personal injury or death caused by an intoxicated driver or a driver under the influence of drugs, debt acquired through deceitful conduct and fine or restitution included in a judgment on the debtor’s conviction of a crime.
Non Dischargeable Debts under Chapters 7 & 13
Under Chapter 7, as soon as the bankruptcy discharge is received you are responsible for paying the non-dischargeable debt. Under Chapter 13, these debts are to be settled in full. If left unsettled, the balance remains till the end and you have to carry on paying the secured debts (with the intention of keeping a secured property). As part of the Chapter 13 bankruptcy repayment plan non-dischargeable debts can be paid.
As part of the Florida bankruptcy law the following debts cannot be settled under Chapter 7 or 13:
- Alimony commitments, back child support and similar family support debts
- Debts for death or injury caused by drugged or drunken driving
- Student loans
- Penalties for breaking the law which includes criminal restitution and traffic tickets
- Tax and income tax debts incurred within three years
- Debts not listed in the bankruptcy papers.
Certain debts are declared non-dischargeable under Chapter 7 in case the creditor contests the bankruptcy discharge claim:
- Debts incurred through fraudulent means
- Credit purchases worth $1150 or higher for luxury services or goods and cash advances or loans made within 60 days of filing for bankruptcy
- Debts from injury to someone’s property or to someone incurred as a result of misappropriation and breach of trust.
- Past due alimony debts unless one is able to pay for alimony after filing for bankruptcy even after receiving the benefits.
Grounds for Denial of Discharge –Chapter 7 Scenarios
To receive a discharge, there are certain provisions under the bankruptcy code that you must abide. Section 727(a) lists reasons for court denial. If the court denies a Chapter 7 discharge, no debts shall be discharged including the ones that were considered dischargeable. Denial may be issued by the court in case of the following circumstances:
- The debtor fails to submit requisite tax documents
- The debtor fails to complete a course on personal financial management
- Failure to transfer property to deceive creditors
- Hide or destroy records
- Failure to account for lost effects or violation of court orders
- Commit fraud in connection to the bankruptcy case
- Bankruptcy case filed in the past where discharge was granted
If you have any questions about Florida nondischargeable debts or would like to speak to us about your options, please contact us at (813) 518-7411. We represent clients during stressful and difficult times in their lives. We are empathetic, responsive, and push for a quick resolution. We look forward to helping you resolve your issue quickly, fairly, and in a way that will help you to return to the stable, predictable life that you deserve.