What Are Some Common Exceptions to Discharge in a Bankruptcy?
In a bankruptcy, there are some common exceptions to discharge.  This means that there are certain things that are unable to be eliminated through a bankruptcy.  According to the United States Bankruptcy Code, Section 523, Debtors are unable to discharge certain taxes.  If the taxes are more than three years old from the date which they are due, i.e. April 15, they are able to be discharged as long as they were filed in a timely manner and were filed more than two years prior.  For example, if it is February 1st, 2012, debtors would be able to discharge taxes for the year 2007 and earlier.  If it is May 1st, 2012, debtors would be able to discharge 2008 and earlier because it is after April 15th.
Debtors often inquire about the ability to discharge many other forms of debts.  Student loans, child support obligations, and fraudulent transactions cannot be discharged.  According to Section 523 of the United States Bankruptcy Code, debtors also may not discharge a debt related to an intentional tort against another person or their property.  A judgment related to a vehicle accident may be discharged under a bankruptcy, and the bankruptcy will assist the debtor in getting their license back if it has been revoked as a result of the judgment.  However, the Bankruptcy Code does not allow a judgment on a motor vehicle accident to be discharged if the accident occurred as a result of the debtor being intoxicated or under the influence of drugs.
There are also other exceptions to a debtor’s discharge.  A debtor cannot discharge a debt that could have been included in a previous bankruptcy, a payment of restitution ordered by the court, a debt pursuant to a divorce judgment or marital settlement agreement to be paid to a debtor’s spouse or ex-spouse, or condo fees as long as the debtor maintains ownership of the property.  There are also other exceptions to discharge pursuant to the United States Bankruptcy Code.  The ones discussed are exceptions to discharge that can arise with some frequency.  If you have any questions about exceptions to discharge or other issues, please contact a St. Louis or St. Charles bankruptcy attorney.