While most unsecured debt is eliminated in a bankruptcy, there are still some payments that must continue to be made. Understanding this can help you make some important decisions. These specific kinds of debt cannot be “discharged” in a bankruptcy and are listed explicitly in the Bankruptcy Code in Section 523 (a).

In a Chapter 7 bankruptcy, you cannot eliminate:

Child support or alimony

Certain tax debt

Student/College loans

Luxury items purchased within 90 days of filing bankruptcy and worth more than $500

Government fines

Cash advances above $750 that were made within 70 days of filing bankruptcy

Debts that are deemed fraudulent

Damages that are a consequence from the willful or malicious or injury of another person

Condominium or home owner’s association fees

Personal injury or death from the operation of a vessel, vehicle, or aircraft

In some cases, debts that are not listed on your schedules

If you have a debt that is a result of malice or fraud, this is not automatically exempt from bankruptcy discharge. Creditors must act and specifically ask that the court to prevent the discharge of this kind of debts. If the creditor fails to act, then the debt is discharged.

If you file a Chapter 13 bankruptcy, you cannot eliminate:

Student loans

Government fines

Child support or alimony payments

Judgments for drunken driving

Certain kinds of tax debt

Debts that result from fine or restitution from a criminal case

One type of debt that might be possible to eliminate from a Chapter 13 bankruptcy is a debt that results from wrongdoing or fraud that is deemed intentional. In this case, the creditor must file and prevail in an action and request to have the debts ruled non dischargeable. If the creditor does not, then the debtor will receive the discharge of debt.

Understanding the various nuances of bankruptcy can be difficult. To find the best options for your situation, contact a bankruptcy expert in your area.

Stephen Trezza has effectively managed a wide variety of cases, including many Arizona bankruptcy cases. For further information about Pima county bankruptcy court, check out the FileBankruptcyinArizona site now.