What Debt Cannot be Discharged in Bankruptcy

Many people believe that when they file for bankruptcy that all of their debt will be forgiven. Unfortunately, not all debt can be discharged in bankruptcy. Although bankruptcy is designed to eliminate debt and help consumers start over some debt is exempt from bankruptcy. Some examples of debt that is non-discharged include:

  • federal taxes
  • state taxes
  • local taxes
  • most federal funded student loans
  • money borrowed on a credit card to pay government taxes
  • debts incurred based on fraudulent acts
  • debts from willful and malicious acts to another person or property
  • debts obtained from larceny
  • debts obtained from embezzlement
  • debts obtained from a breach of fiduciary responsibility
  • debts related to child support
  • debts related to alimony
  • debts not set forth by the debtor on the lists and schedules the debtor must file with the court
  • debts for certain condominium
  • debts for certain cooperative housing fees

Much of the debt that is included in the list above is related to taxes, illegal activities and family obligations. Keep in mind, there are other items that are non-dischargeable debt that was not included in this list. For more detail relating to your specific situation, please contact Julio Portilla Law. We can review your situation and find the best options available to you. Julio Poritlla is a New York bankruptcy lawyer dedicated to helping clients regain their financial lives. For a FREE consultation, please contact us at 212-365-0292. We are looking forward to assisting you.