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What Bankruptcy Will Not Do

Bankruptcy is a great protection for consumers who struggle with debt yet there are some things bankruptcy will not do. Most, but not all debts can be eliminated through bankruptcy. These types of debts that cannot be wiped out by bankruptcy are called “non-dischargeable debts.” For example, if you file a Chapter 7, you will still be responsible for a  few types of debts, such as student loans. (Often times, these other types of debts can be taken care of with the funds that become available after filing bankruptcy.) If you file a Chapter 13, this type of bankruptcy will not eliminate debt. Instead, you repay nondischargeable debts through the debt consolidation.  Speak to a lawyer at Debt Advisors Law Offices in Wisconsin to learn the pros and cons about bankruptcy including what types of debts cannot be eliminated through bankruptcy.

Nondischargeable Debts

There are many types of nondischargeable debts:

Taxes: Income tax debt will not be eliminated unless the:

  • tax is more than three years old;
  • tax return was filed on time;
  • tax return was correct.

If you filed the tax return late, but filed more than two years before you filed bankruptcy, you may be able to eliminate the debt. A Debt Advisors attorney can advise you on whether your tax debts can be resolved with a bankruptcy.

Student Loans: Money borrowed for your education cannot be eliminated through bankruptcy. The 2005 bankruptcy code amendments strengthened this exception to discharge. However, we are sometimes able to clear up student loans with funds freed up from Chapter 7 bankruptcy.

Marital Debts: You cannot eliminate debts that you are directed to repay by a divorce or separation agreement in a Chapter 7 bankruptcy. However, Chapter 13 consolidation can help you with this type of debt. Mike and Chad can explain how a Chapter 13 can help you resolve this sort of debt.

Child support and Alimony: Child support and alimony cannot be eliminated by filing a bankruptcy. If you fall behind on these types of obligations, you can consolidate and repay delinquent child support through a Chapter 13 for the amount you fell behind.

Recent Credit Card Purchases and Cash Advances: Consumer debts owed to a single creditor are unlikely to be eliminated if the debt:

  • totals more than $500.00; and
  • was incurred within 70 days of filing the bankruptcy.

Speak with a Debt Advisors attorney so they can explain how you can avoid this issue.

Fraud: Debts incurred by a fraudulent act or by making false representations cannot be eliminated through bankruptcy. The creditor must file a request with the court to have the debt declared non-dischargeable. The bankruptcy judge will then rule on the creditor’s request. If you are not sure if you incurred debt by way of fraud, you ought to speak with Chad and Mike before you decide how to proceed.

Fines and Citations: Fines for breaking the law cannot be eliminated through a bankruptcy. For example, traffic tickets, criminal restitution, and parking tickets will survive a bankruptcy filing.

Intentional Torts: Debts caused by a willful or malicious injury to another person may not be eliminated through bankruptcy. The creditor must file a request with the court to have the debt declared nondischargeable.

Operating Vehicle while Intoxicated: Debts for injury or death caused by driving under the influence of alcohol are not eliminated in bankruptcy.

If you have questions about asset protection and the bankruptcy process, complete our secure online evaluation form or call today to schedule a free consultation with Mike or Chad. We have offices throughout Wisconsin, including Milwaukee, Madison, and Oshkosh. You can hire our office for $100.00 to start. We will set up a reasonable plan to enable you to pay the balance of the fees while we work on your case.

 

Reviews by Google Users

  • 5 star review  I highly recommend Debt Advisors if you are considering a bankruptcy. We are nearing the end of our plan and everyone at DA has been extremely helpful and thorough. Angel in particular has been very helpful with the many, many questions we've had over the years. Thanks for all of your efforts!

    thumb Howard Lord
  • 5 star review  Everyone treated me with dignity and respect. Chad explained everything and put me at ease. I would recommend Debt Advisors to anyone looking for professional quality experience.

    thumb Angela McAllister
  • 5 star review  I had nothing but an amazing experience. Very professional, intelligent, hard working, and caring. Attorney Michael S. Georg was nothing short of amazing! He made the process painless and easy. From the first meeting to the last he was nothing but professional and showed that he cared! His staff was excellent and is very helpful!

    thumb Darrel Allen Sr
  • 5 star review  From the second I walked in and talked to the lawyer I felt a sense of relief and a huge weight off my shoulders. Debt Advisors was efficient, timely, and professional. They helped my husband and I to get a fresh start financially.We’re so happy we chose Debt Advisors!!

    thumb Suseela Riley
  • 5 star review  Not a good year, 2016. Chad L. Schomburg at Debt Advisors Law Office made it easier. Very professional and with the knowledge to answer all my questions. Extremely happy with the results and I highly recommend this Law Office.

    thumb Marco Ramirez
  • 5 star review  Mike Georg was extremely helpful during the entirety of my process. He made sure I understood exactly what was going to happen and he was always there to answer any questions I may have had. I really like the fact that I didn’t have to pay all out of pocket at once. Their payment plan made it easy for me to pay what I had to without breaking the bank. I’m completely satisfied with the level of professionalism that everyone in the office has. Even to this day I’m able to get in touch with them which I’m really grateful for. I’d definitely recommend them to my family and friends. If your someone who’s looking to get out of debt but are skeptical, you’ll have no worries here with Debt Advisors. The process is quick and easy.

    thumb Shetara Johnson
  • 5 star review  I still remember the day when I started my bankruptcy back in 2016. I selected Debt Advisors because a good friend of mine had recommended Atty Mike Georg to me. After we met I was glad that I did select Debt Advisors for many reasons. Mainly, it was the professionalism and care that Mike and his staff showed me throughout the entire process. It felt good knowing that my situation would be taken care of efficiently and in a timely manner. Even after my bankruptcy was discharged Attorney Mike Georg and Debt Advisors have been there for me in 2018 and this 2020. Both times I've needed professional help with things like providing me with documents and forms that I've needed from my case. I strongly encourage anyone looking for debt consultation to visit Debt Advisors for help. They're great at what they do!

    thumb Arlandus Morton
  • 5 star review  Bankruptcy is never fun, but this Law Office made it so much easier. If I ever had any questions at all they were answered timely. They even helped me through a rough time when I ended up having to pay taxes and had a big medical exspense too! They were always kind and never made me feel bad for having to do the bankruptcy. They were sympathetic to why and just helped me through it! I recommend them to anyone I know going through this or having to start this process. I know of two of the people I referred who used htem and loved them too! Thank you Debt Advisors Law Offices! Jeremy and Angel thank you personally!

    thumb Tami Miller
  • 5 star review  I can confidently say that Debt Advisors is NOT in the business of taking advantage of you in your current situation. Debt Advisors is in the business of helping you get in a better place than you are now. I was there, constantly worrying about this large amount of debt that I owed. Feeling sick to my stomach and unable to sleep at night. Then I talked to Mike. He is genuine and honest. Having him in my corner took this huge weight off my chest. If you are in this place, I highly recommend giving Debt Advisors a call, it is the first step in the right direction.

    thumb Kurt Cameron
  • 5 star review  I had nothing but and amazing experience with Debt Adviosrs. They made this process for me easy and painless. Still today they are open and willing to help me. These are really great people, and they really care. Thank you Geroge and the rest of your team.

    thumb DENISE MOORE

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