When debts are discharged they are forgiven or cancelled. For an individual or a business, this relief from debt is one of the most beneficial aspects of bankruptcy along with the automatic stay. While many types of debt are dischargeable, there are exceptions. If you are contemplating filing bankruptcy, the attorneys of Weintraub & Selth can help you identify your nondischargeable debt and explain the crucial difference between nondischargeable and dischargeable debt. If the debts that are of most concern to you are not dischargeable, bankruptcy may not be the appropriate path to debt relief.
Learning how bankruptcy law applies to your financial situation will help you choose the right debt relief option. Our attorneys can offer guidance and advice. At Weintraub & Selth, APC, we will review your finances and goals before recommending bankruptcy or some other solution. By using the means test, analyzing important documents and your financial situation, we will help you make a wise decision. Also, if bankruptcy is not appropriate, we will identify any available alternative methods of debt relief.
Examples of Nondischargeable Debt
In most cases, the following types of debt are nondischargeable:
- Certain types of tax debt
- Court-ordered child support and spousal support
- Debts incurred from fraudulent activity
- Student loans, unless you can prove undue hardship
- Personal injury or wrongful death judgments resulting from driving while intoxicated
- Criminal fines and penalties
- Debts from willful and malicious injury to a person or property
Discuss your case with a lawyer before you make decisions about bankruptcy or debt relief alternatives. Bankruptcy laws are complex and each case is unique but the attorneys of Weintraub & Selth are prepared for all possibilities.
If you have a significant amount of nondischargeable debt, bankruptcy may still be a feasible option. If you can have some of your debt forgiven, you may be in a better position to pay off your nondischargeable debt. We will listen to your goals and advise you on the steps you can take towards long-term financial health.