Why debts are not discharged in bankruptcy?
June 28, 2022
By Diane Drain Attorney & Retired Law Professor
The law changes and the following may not be accurate. Talk to your attorney.
If your discharge in bankruptcy is granted, in most circumstances all of your debts will be discharged except the following list, which is intended to be only an outline of most debts that are not discharged.
- Taxes due within the last three years or taxes not assessed because of fraud.
- If the bankruptcy court so rules, debts for obtaining money, property, services, or an extension, renewal, or refinancing of credit by means of false pretenses, fraud, or a false financial statement used with intent to deceive.
- Debts not listed on your bankruptcy papers, unless the creditor had knowledge of the case in time to file a claim.
- If the bankruptcy court so rules, debts for fraud, embezzlement or larceny.
- Debts for domestic support obligations (alimony, maintenance or support).
- If the bankruptcy court so rules, debts for intentional injury.
- Debts for certain fines and penalties payable to governmental units.
- Debts for student loans that were insured by a governmental agency, unless not discharging the debt would impose an severe undue hardship.
- This undue hardship must be properly plead to the Court and the judge will decide based on your unique situation.
- Debts that were or could have been listed in a prior bankruptcy case in which you either waived your discharge or your discharge was denied.
- Debts that are owed to a single creditor (of an amount specified in the Code) for the purchase of “luxury goods” incurred by you in the 90 days before you filed the petition for bankruptcy.
- The 90 day period may be long, depending on your history of paying, what the money was used for and your “intent” at the time of incurring the debt.
account incurred by you an the 70 days before the bankruptcy was filed, regardless of the number of creditors involved.
- DUI personal injury judgments against you resulting from car accidents in which you were a drunk driver.
- Post-petition Homeowner association fees. Note – pre-petition HOA assessments are normally still attached to your home.
- Monies owed to a pension, profit-sharing, stock bonus or such other plan.
About the Author: Diane Drain
Diane is a well respected Arizona bankruptcy and foreclosure attorney. As a retired law professor, she believes in offering everyone, not just her clients, advice about bankruptcy and Arizona foreclosure laws. Diane is also a mentor to hundreds of Arizona attorneys.
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