Not all debts are discharged after Chapter 7 bankruptcy

On Behalf of | Jan 10, 2019 | Chapter 7 Bankruptcy

Bankruptcy can be a useful legal tool for Georgia residents who are facing insurmountable debts and who are without the means of paying them off. Particularly, Chapter 7 bankruptcy may be an option for those whose income does not preclude them from using the liquidation process to pay off their creditors and settle their debts. Though there are other legal and financial considerations that individuals should make before filing for bankruptcy, Chapter 7 can be a good path for some who have few other options for controlling their debts.

While Chapter 7 bankruptcy can be useful for many, readers should be aware that it will not eliminate all possible debts. There are certain obligations that cannot be undone by the bankruptcy process, and this post will address several of them. Readers are reminded that this post is informational only and that they should seek professional guidance when it comes their specific case.

Debts that are incurred from court orders generally are not dischargeable through Chapter 7 bankruptcy. For example, child support delinquencies or alimony debts may not be erased by filing for Chapter 7 bankruptcy. Also, debts that are not included in the debtor’s bankruptcy filing may not be subject to the debtor’s Chapter 7 discharge.

Some tax obligations, student loans and court-imposed fines cannot be discharged through Chapter 7 bankruptcy. Additionally, any debts that could not be discharged in a prior bankruptcy may not be discharged in a subsequent Chapter 7 bankruptcy. Though Chapter 7 bankruptcy can help debtors achieve some level of financial freedom, all individuals should be aware that they may have some debts that survive the process and remain their obligations after their discharge has been granted.

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