WHAT DEBTS ARE NOT ERASED BY A BANKRUPTCY?
Certain types of debts are not erased by bankruptcy. They include: • Fines imposed by a court; • Debt incurred by misrepresentation or fraud; • Alimony or maintenance payments; • Debt for damages imposed by a Civil Court for intentional bodily harm, sexual assault or wrongful death; • Student loans, if bankruptcy occurs within 7 years of ceasing to be a full or part time student. Also, bankruptcy does not generally interfere with secured debts (i.e. a mortgage or vehicle lease) if there is no equity in the secured asset.
A full chapter 13 discharge granted upon the completion of all payments required in the plan discharges a debtor from all debts except: 1. debts that were paid outside of the plan and not covered in the plan, 2. debts for alimony, maintenance, or support, 3. debts for death or personal injury caused by the debtor’s operation of a motor vehicle while unlawfully intoxicated, 4. debts for restitution or criminal fines included in a criminal sentence imposed on the debtor, 5. debts for most student loans or educational obligations that first became less than 7 years before the case was filed, 6. installment debts whose last payment is due after the completion of the plan, and 7. debts incurred while the plan was in effect that were not paid under the plan. A partial chapter 13 discharge granted when a debtor is unable to complete the payments under a plan due to circumstances for which the debtor should not be held accountable, discharges the debtor from all debts except: 1. secured debts
