Debts That Can’t Be Bankrupted (And How to Handle Them) in Raleigh, NC!

Non-Dischargeable Debts Sometimes, people try to include certain debts in their bankruptcy that are usually not allowed to be erased. These debts are called “non-dischargeable” under the law, meaning they can’t typically be wiped away. But don’t worry, there are still ways to manage them! Let’s look at some of the top non-bankruptable debts and how you can handle them.

1. Child Support and Alimony

Child support and alimony are usually not bankruptable. However, if you’re behind on payments, you can use a Chapter 13 bankruptcy to repay the overdue amount over time. Also, if your income has dropped significantly, you can ask the Family Court to review your support amounts.

2. Mortgage in Chapter 13

If you have a mortgage and file for Chapter 13, you have a few options:

• Catch up on missed payments through your repayment plan.
• Surrender the property and treat it like an unsecured debt.
• Strip a second mortgage if your home is worth less than your first mortgage.

3. Federally Guaranteed Student Loans

Student loans backed by the government are generally not bankruptable unless you can prove extreme hardship. To qualify, you must show that repaying the loan would prevent you from supporting yourself and your family.

4. Debts from Theft or Fraud

If you owe money because of fraud or theft, those debts may not be dischargeable in Chapter 7. But in Chapter 13, you can repay these debts over time. If a creditor thinks you committed fraud by borrowing money when you knew you couldn’t pay it back, they’ll need to prove it in court.

5. Criminal Acts

You can’t bankrupt debts that come from criminal actions or court-ordered restitution, such as paying for someone’s medical bills after intentionally hurting them.

6. Drunk Driving Accidents

If you cause an accident while driving drunk, you can’t bankrupt any personal injury damages. However, property damage might still be dischargeable.

7. Missed Debts on Your Bankruptcy Petition

If you forget to list a debt in your bankruptcy, you can reopen the case to add it later, but it can be expensive. It’s best to list all debts upfront, even if you’re unsure if they’re dischargeable.

8. Previous Bankruptcy Debts Due to Fraud

If a debt wasn’t discharged in a previous bankruptcy because of fraud or wrongdoing, it won’t be discharged in the current one either.

9. Debts from Malicious Acts

If you intentionally damage someone’s property, those debts won’t be dischargeable.

What Happens If a Creditor Doesn’t Object?

One of the perks of bankruptcy is that if a creditor doesn’t object to your bankruptcy filing by a certain date, the debt might be discharged anyway. Even non-dischargeable debts can sometimes be wiped out if the creditor fails to act in time!

What If a Creditor Objects?

Some debts will be discharged unless a creditor objects and proves that:

• You incurred $500 or more for luxury items within 90 days of filing.
• You took out cash advances over $750 within 70 days of filing.

Final Thoughts

Even if you have non-dischargeable debts, it’s important to list them in your bankruptcy. If a creditor doesn’t object, the debt might still be discharged. Always discuss these tricky debts with your attorney to find the best strategy for your case. Bankruptcy laws have lots of exceptions, and your lawyer can help you navigate them.

Need help? Reach out to us to see how we can guide you through the process!