Up 45. What debts cannot be discharged in bankruptcy?
In general: • Liens, such as mortgages and security interests in cars are non-dischargeable as are some other types of obligations including: Federal, State and local tax claims (subject to specific time rules) • Customs duties • Spousal and Child support • Most student loans • Secured debts • Fines and penalties imposed by government agencies • Debts incurred due to false statements made with the intent to deceive • Fraud committed in a fiduciary capacity, such as embezzlement or larceny • Punitive damage claims for “willful and malicious” acts • Debts not list on the forms filed with the Court • Drunk driving obligations A non-dischargeable debt is one that will survive the bankruptcy proceeding. The debtor still has the obligation to pay this debt; the creditor has every right to collect.
