Some people mistakenly believe that after they file for bankruptcy, their debts are wiped clean and they get a completely fresh start. Unfortunately, the federal bankruptcy code is not that kind. If you file for Chapter 7 bankruptcy, the majority of your debt will be cleared away, but there are some debts that are “nondischargeable.” This means they stay with you even after your bankruptcy is filed and done.
Types of Nondischargeable Debt
The Bankruptcy Code lists 19 categories of nondischargeable debt. These types of debts do not require a court hearing to determine whether or not they will be dischargeable. The burden is on the debtor to show extraordinary circumstances in order to convince a court to discharge on the debts listed below. Here is a sample:
- Student loans
- Child support and alimony
- Debts from a civil judgment related to drunk driving
- Debts which are the result of fraud or criminal acts