What You Need to Know About Non-Dischargeable Debts

Posted on : March 30, 2016

Filing a Chapter 7 bankruptcy means that you may be able to get your debts discharged. However, whether or not you can get all of your debts discharged depends on the type of debts you have. Not all debts are dischargeable, and you may still owe some debts after going through the bankruptcy process. Here’s what you need to know about non-dischargeable debts.

Debts Incurred After Bankruptcy is Filed

If you file for bankruptcy and then incur new debt, whether it is considered secured or unsecured, you will still owe that debt. It will not be included in the bankruptcy proceedings. The bankruptcy will only include the debt listed on the forms at the time you filed.

Debt Incurred Through Fraud

If you have incurred debt through fraudulent means, this is generally not considered dischargeable by Texas courts. This includes debts that are incurred as a result of willful or malicious action.

Tax Debt

Certain tax debts are not considered dischargeable, meaning that if you owe a lot in taxes, you will most likely still owe Uncle Sam once the bankruptcy has been finalized.

Creditors Not Listed

If a creditor comes forward after the bankruptcy has been filed, you may still owe that debt, even if the debt itself was incurred before the bankruptcy. It is important to investigate all potential creditors and list every one on the bankruptcy forms when you file.

Student Loans

Almost all student loans are considered non-dischargeable. However, in rare cases, a student loan may become dischargeable under certain circumstances. If you owe student loans, discuss with your bankruptcy lawyer the possibility of it becoming a dischargeable debt.

Back Child Support

If you owe back child support, it will most likely not be discharged in a Chapter 7 bankruptcy. You will still owe the same amount of child support when the bankruptcy is over. However, when you file for bankruptcy, collection activity will cease until the bankruptcy is completed, giving you some time to get caught up financially to where you can make the payments.

Although not all debts are dischargeable under a Chapter 7 bankruptcy, many of them are and this type of bankruptcy can provide substantial relief for individuals and families that are overwhelmed with debt. Contact the Law Office of Howard Tagg today for a consultation to discuss your financial situation in detail and to learn more about your options. Call now at (903) 581-9961.

Posted in : Administrator Tyler