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What Debts Cannot Be Wiped Out Or Eliminated In Bankruptcy?

 Many times I am asked  what debts cannot be wiped out or eliminated in bankruptcy ?  Generally, most debts can be wiped out in a chapter 7 bankruptcy or a chapter 13 bankruptcy . However, there are some exceptions to the dischargeability of a debt in bankruptcy. Most secured debts, such as payments for debts on houses and cars, which are secured debts, cannot be eliminated in bankruptcy unless you return the house or the car to the creditor. In other words, the house or the car is collateral for the debt and cannot be eliminated in a chapter 7 bankruptcy or chapter 13 bankruptcy.

The bankruptcy code  […]

Can Taxes Be Eliminated in Bankruptcy?

Some taxes may be eliminated in bankruptcy. The full discussion of dischargeability or eliminating taxes and bankruptcy is too complicated for this one small blog. However, I will discuss the basics of dischargeability of taxes in bankruptcy. For more detailed discussion, contact Duncan Law or a competent bankruptcy or tax attorney.

Most taxes that are over three years old and were filed at the time they were due, may be discharged in bankruptcy. Most taxes that are due within three years of filing the bankruptcy cannot be wiped out or discharged in a bankruptcy. This is generally known as the […]

Eliminating Student Loans in Bankruptcy

Under the bankruptcy laws, student loans are usually non-dischargeable. In other words, most student loans cannot be wiped out in bankruptcy. Under 11 USC 523(a)(8) of the bankruptcy code, loans that are for an educational benefit cannot be discharged in bankruptcy. The only exception of this is the loan causes an “undue hardship” for the person owing the loan.

Most people that are paying back student loans are under a hardship to pay back the student loans. However, the federal courts have stated that the hardship must be an “undue hardship”. An undue hardship is one in which the person […]

Does Bankruptcy Stop Creditor Harrassment?

Yes, filing a bankruptcy does stop most creditor harassment.  When a person files a bankruptcy, an automatic stay by the court is enacted under the federal bankruptcy laws. This stay, which is an order from a federal judge, ordering your creditors not to attempt to collect any debts from you. This order stops all harassment, lawsuits, and attempts to collect debts by a creditor. In the event a creditor attempts to collect a debt after the bankruptcy is filed, and the creditor is aware of the bankruptcy, the debtor’s attorney can file a motion for sanctions against the creditor […]