Nondischargeable Debts in Bankruptcy

Posted by Wesley Scott on May 6, 2019 at 9:00 AM
Wesley Scott

biggest-bankruptcy-regrets-in-minnesotaA discharge is a court order stating that a debtor is relieved of paying his or her debts. This is the aim of bankruptcy. Bankruptcy does not discharge every type of debt, however, so if you are having trouble paying any of the following debts, bankruptcy may not be right for you.

The most glaring nondischargeable debt is student loan debt. Bankruptcy cannot be used to discharge the costs of higher education. See the separate post about this issue for more on this surprisingly nondischarageable debt.

Most taxes are not dischargeable in bankruptcy. This makes a lot of sense in that bankruptcy is a government-sponsored debt consolidation program. The government is not going to excuse people from paying their debts to the government.

Child and spousal support are also nondischargeable debts for obvious reasons. Supporting children and/or a former spouse is an important financial obligation that society does not want to excuse. People who are unable to pay their support obligations must seek modification through the family court process, not through bankruptcy. Child and spousal support are decreed by a court, so the bankruptcy court will not interfere with another court’s decision.

The same reasoning applies to court fines and criminal restitution. These types of debts are not dischargeable because they were imposed in a court proceeding. Debtors cannot be allowed to shirk their obligations to the justice system and to society. Debtors remain responsible for these debts.

Finally, personal injury debts caused by driving under the influence of alcohol or drugs are nondischargeable. This one also makes a lot of sense in terms of societal costs. Drivers who hurt people because if their own choices will not be able to escape from liability through bankruptcy. There are simply some debts that must be paid.

If you are ready to discuss dischargeable debts, contact Minnesota’s NICEST bankruptcy law firm at www.kainscott.com. You will be so happy you did!

Take the first step toward  getting your life back  Let us help you get started on your road to a debt-free life Sign Up for a Free Consultation