Debts that Survive a Chapter 13 Bankruptcy

There are certain debts that are discharged regardless of whether a Chapter 7 or a Chapter 13 is filed. Discharged means that you will no longer be responsible for repaying them once the bankruptcy is over. In a Chapter 7 you will not have to repay any portion of the debts unless there are unexempt assets that the trustee divides among your creditors. In a Chapter 13 the repayment plan will most likely provide for some portion of the debts to be paid back. If you complete the plan successfully, the remaining unpaid debt will be discharged.

Regardless of which chapter of bankruptcy you file, certain debts will be discharged with exempt of the portion paid back as mentioned above. These types of debts include credit cards, medical bills, some lawsuit judgments, obligations under leases and contracts, personal loans and promissory notes.

Debts that survive a Chapter 13 bankruptcy no matter what include:

  • Domestic Support Obligations
  • Criminal Penalties
  • Certain Taxes
  • Intoxicated Driving Debts
  • Debts Arising from Willful or Malicious Actions
  • Debts or Creditors You Do Not List

Debts that are discharged in a Chapter 13, not Chapter 7 include:

  • Marital debts created in a divorce settlement (unless they are determined to be support)
  • Debts incurred to pay nondischargeable tax debts
  • Court fees
  • Condo fees incurred after the bankruptcy filing date
  • Debts for loans from a retirement plan
  • Debts that could not be discharged in a previous bankruptcy due to failure to received discharge

You can convert from one chapter of bankruptcy to another. When you convert, you are then subject to the dischargeability rules of the chapter to which you converted, not the chapter you started out in. There are many reasons you might convert from one chapter to another. Reasons include: inability to complete a Chapter 13 plan, abuse found by the court of a chapter 7 requiring conversion to a Chapter 13. You may also convert because it is determined that some of your debts are only discharged in a Chapter 13 and not a Chapter 7.

Dischargeability of debts can be an complicated issue and should not be determined by this non-exhaustive list of some of the debts that are not discharged. If you are considering bankruptcy, contact our office for a free consultation to meet with one of our attorneys to determine if bankruptcy is right for your situation.