If you are considering filing for bankruptcy, you may think that all of your debts will disappear and you will be left with an entirely clean slate. However, this is not necessarily true. Depending on the types of debt you have, you and other Eugene residents may still have some debt you are required to pay back after a Chapter 7 discharge. At (The Law Office of Kim Covington, we understand the differences between dischargeable and non-dischargeable debt, and are prepared to assist you in learning what your obligations are.
The following types of debt, according to the Administrative Office of the U.S. courts, are considered non-dischargeable debts, and will not be affected by a bankruptcy filing:
1. Child support and alimony. You must continue to make your court-ordered payments to a child or ex-spouse. Back child or spousal support will remain your obligation to repay.
2. Certain kinds of tax claims must be repaid.
3. You must also pay any penalties or fines owed to the government.
4. You cannot discharge money owed to a victim for legal damages resulting from a drunk driving injury you caused, or willful and malicious injury to a person or property.
5. Student loans that are guaranteed or funded by the government are non-dischargeable.
6. You will also continue to be responsible for any debts you do not disclose in your bankruptcy filing.
If you have any of these types of non-dischargeable debt, you might think your situation is hopeless. However, it is important not to get discouraged. A Chapter 7 bankruptcy may address the dischargeable debt you have, which should make the obligations you are responsible for much easier to manage. You can learn more about ways to address your financial problems by visiting our page on Chapter 7 bankruptcy.