What Bankruptcy Will Not Do
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.