Most people file bankruptcy because they need financial relief from their debts. A discharge is what provides this relief. A discharge is a court order that relieves you from paying most of your debts.
There are some types of debt, however, that a bankruptcy court will not discharge. Keep reading for more information.
Which debts are not discharged during bankruptcy?
According to the United States Justice System website, the following types of debts are not eligible for bankruptcy discharge.
- Child support
- Most types of taxes
- Court fines
- Criminal restitution
- Personal injury damages owed as a result of driving under the influence of alcohol or drugs
- Most student loans
Keep in mind that your discharge will only apply to debts that occurred before the date you file for bankruptcy. Additionally, if you do something dishonest such as try to hide assets or lie during your bankruptcy case, the judge may choose not to discharge those debts. Similarly, if the judge finds that you acquired property or debt through fraud or other illegal means, it may not be eligible for discharge either. It is important to be honest every step of the way.
How often can you file for bankruptcy?
Bankruptcy is not a “get out of debt free card” that you can use whenever you like. You may receive a chapter 7 discharge no sooner than once every eight years. Additional rules may apply if you received a chapter 13 discharge in the past.
It’s important to choose the right bankruptcy chapter to meet your needs. If you find that you would like to change the type of chapter you are filing for, you may do so as long as you qualify.