What debts cannot be discharged?
Alimony, child support, certain taxes as mentioned previously as well as debts based upon fraudulent acts are generally not dischargeable. Other debts may not be discharged as well, which could include debts arising from drunk driving offenses, credit card charges owed to a single company that exceed $500.00 for a luxury good or service used by you within 90 days before you file for bankruptcy, or taking out a cash advance in excess of $750.00 within seventy days before you file for bankruptcy relief. If, however, these charges or cash advances were for things reasonably necessary for your support then they would not present a problem with your discharge. If this is the case, then it may be advisable to wait a short period of time before you file for bankruptcy. Certainly, you should immediately cease using your credit cards for anything after today since those debts may not be discharged in bankruptcy.
As a general rule, certain debts (specified in 11 U.S.C.A. 523[a]) cannot be discharged. These include taxes (in many cases), alimony, child support, student loans, criminal fines, debts related to drunk driving, debts not listed in the bankruptcy petition, and certain debts incurred within 60 days of filing the petition. A few exceptions to the general rule of nondischargeability exist, but they are difficult to establish and typically require the debtor to file with the Court, in addition to the Chapter 7 petition, a Complaint to Determine Dischargeability. For example, 11 U.S.C.A. 523(a)(8) allows a student loan to be discharged if it is (1) not “insured or guaranteed by a governmental unit,” and not “made under any program funded in whole or in part by a governmental unit or nonprofit institution.” A student loan may also be discharged if repaying it will “impose an undue hardship on debtor and the debtor’s dependents.” But the “undue hardship” exception is difficult to establish.
