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4 Types of Debt Chapter 7 Bankruptcy Won’t Discharge

By Brenner Spiller & Archer, LLP | February 24th, 2020

Picture of money.

Bankruptcy is a helpful solution for difficult financial problems. For example, some people have a large credit card debts that become too difficult to pay off. These people might just need to make a clean break with a painful financial past and start things over fresh.

Chapter 7 bankruptcy, also known as a straight or liquidation bankruptcy, allows qualifying individuals to discharge their debts. With Chapter 7 bankruptcy, you may be able to eliminate your most significant debts. These debts can include medical bills, credit cards, certain loans, and court judgments.

However, if you’re one of the many people considering bankruptcy, you should know that there are certain debts chapter 7 won’t eliminate. The following are four types of debt that chapter 7 bankruptcy won’t discharge:

  1. Alimony: If you’re filing for bankruptcy after you’ve already been divorced, you’ll need to continue making pre-established payments to your ex-spouse.
  2. Child Support: Similar to alimony, you must continue to pay any child support.
  3. Student Loans: Many people seek out bankruptcy because their student loans are too high. Unfortunately, chapter 7 bankruptcy will not wipe out any debt you accumulated as a result of student loans.
  4. Fines and Penalties: If you broke the law, you still have to pay any court-imposed monetary penalties. This includes fines from infractions, misdemeanors, felonies, and more.

This article should not be taken as legal advice. If you’re considering bankruptcy or another legal option, you need to consult an attorney for guidance. If you’re in New Jersey and seeking legal assistance, we can help you.

Brenner Spiller & Archer, LLP is a New Jersey law firm that is dedicated to helping families find relief from the burden of debt and other financial woes. For more than 35 years, our bankruptcy lawyers have provided effective guidance on all debt relief matters to clients throughout Central and South Jersey.

Click here to schedule a free consultation with our trusted bankruptcy attorneys.



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