North Chicago Bankruptcy Attorney Talks About Non-Dischargeable Debt...

As per North Chicago bankruptcy attorney David Siegel, not every debt that you are going to list on a Chapter 7 bankruptcy petition is going to be dischargeable or eliminated.  Now, it is true that the overwhelming majority of debts such as medical bills, credit card bills, personal loans, utility bills, rental obligations in the past and things like that are going to be eliminated in the Chapter 7 bankruptcy because they are typically unsecured debts.  However, there are some other debts that are unsecured that are not eliminated such as student loans, recent taxes, parking tickets, child support, maintenance payments and debts incurred by fraud. 

Student loans do have one caveat where they can be eliminated if there is an extreme hardship situation.  In my experience however, I have not seen a case in 20 years where I was able to successfully tell a client that your student loan is going to be eliminated on a hardship provision.  As far as taxes goes, recent taxes are not eliminated but taxes more than three years old are eliminated.  There are some requirements for the tax to be more than three years old and for the return to be filed either on time or not within two years.  So consult with an experienced bankruptcy attorney to learn whether or not your particular debts are going to be dischargeable or non-dischargeable. 

Child support is never going to be dischargeable nor are alimony or maintenance payments.  These are obligations that the court has determined need to be paid and the Bankruptcy Code does not provide for any protection on these debts.  You may reorganize child support and maintenance payments that you fell behind on through a Chapter 13 but they are not eliminated in a Chapter 7 bankruptcy.