What debts can I not get rid of through Chapter 7?

Posted by Angelique CooperJun 03, 20190 Comments

When you get into a situation where your debts are uncontrollable, you may wish to file Chapter 7 bankruptcy in Alabama. While many of your debts, such as car loans and credit cards, will be claimable in your bankruptcy cases, there are other debts you cannot claim. These debts are typically those that are due to your improper behavior or otherwise not allowed for discharge under public policy, according to the United States Courts. In addition, court-ordered debts or debts owed to the government are also usually not discharged through a bankruptcy.

Looking closer at debts that you may incur due to improper behavior, a top one is any order for you to pay damages due to injuring another person. For example, if you drive drunk and caused an accident that injured someone and you were ordered by the court to pay that person restitution, then that debt remains. You cannot get rid of it through filing bankruptcy. Another couple of examples are child and spousal support.

As a matter of law, you also cannot discharge student loan debts or tax debts because both are money owed to the government. In addition, any fines or penalties you owe to the government will not go through the discharge process in a bankruptcy.

You should keep in mind that the disallowable debts can vary due to the type of bankruptcy you file. What is not dischargeable through Chapter 7 may be through another type of bankruptcy. So, you should always consider your options depending on the types of debt you have. This information is for education and is not legal advice.