As much as we tell our clients that bankruptcy gives them the chance to have a fresh start, we at Sherman Law Firm remain honest and say that not all debts can be erased. It is true that in both Chapter 7 Bankruptcy and Chapter 13 Bankruptcy, many types of debts will be wiped clean. However, this is not the case on all of them.

To be discharged of debt means that the court no longer holds you personally liable for them. These often include the following:

• Medical bills
• Credit card bills
• Debts from car accidents (except if you are convicted of DUI/DWI)
• Payables under leases or contracts
• Personal loans

The following liabilities are dischargeable only in Chapter 13 Bankruptcy:

• Martial debts from divorce or formal settlement
• Court fees
• Loans from a retirement plan
• Condo or cooperative housing fee debts
• Debts that couldn’t be discharged in a previous bankruptcy or incurred when you had to pay for a tax debt in the past

If you have a non-dischargeable debt and you filed for Chapter 7 Bankruptcy, you are still obligated to pay for it after your case. For Chapter 13 Bankruptcy, most non-dischargeable debts must be paid through your repayment plan. Below are the known non-dischargeable debts in Texas and in most states in the U.S.

• Debts related to family support, i.e. alimony, child support
• Most tax debts i.e. income tax for the past three years
• Debts for personal injury or death caused by driving while intoxicated
• Fines and penalties for violating the law
• Student loans

In Chapter 7 Bankruptcy, the court may deem the following debts as non-dischargeable if the creditor challenges your request to discharge them.

• Debts incurred from fraud, embezzlement, larceny, or breach of trust
• Credit purchase of $1,150 or more for luxury goods or services done within 60 days of filing
• Loans or cash advances of a minimum of $1,150 done within 60 days of filing

Learn about bankruptcy through our blog. For a more comprehensive legal advice, please call us here at Sherman Law Firm, P.C. and schedule a free consultation today. We currently cater to individuals, families, and businesses in the Fort Worth and Bedford, Texas area.