What Does a Forgiven Bankruptcy Mean?

·      Debts that aren't listed on your bankruptcy petition - If you do not list a debt, it cannot be discharged;

·      Taxes - Any Federal, state or municipal taxes that were due within the last three years;

·      Divorce and property settlements - Not dischargeable unless the other party agrees;

·      Court-ordered alimony and child support payments - Not dischargeable, even if the other party agrees; 

·      Dischargeable debt you incurred to pay off non-dischargeable debt -- For example, you cannot take a cash advance on a credit card to pay off last year's taxes, just so you can write it off in bankruptcy;

·      Criminal fines and debts - All court fees and court-ordered judgments related to any criminal activity cannot be discharged - neither can any judgments or debts incurred as a result of personal injury or death to others caused by your own negligence or criminal activity;

·      Student Loans - that have been in repayment status for at least seven years.  Although there is a general policy not to discharge student loan debt, in some extremely rare circumstances, older student loans can be discharged, particularly if a hardship condition exists;

·      Fraudulent debts -- Any debt that the court finds was obtained fraudulently or illegally will not be discharged.  For example, if you ran up debt on a credit card shortly before filing bankruptcy (within 60 to 90 days of filing), the court will refuse to discharge that debt.  In addition, if you lied on a loan application to obtain funds -- that related debt will not be forgiven in bankruptcy;

If you are considering bankruptcy and are unsure of what debts can be forgiven, we can help!Contact us online or call The Law Offices of Jacoby & Jacoby at 631-289-4600 to schedule a FREE consultation to discuss your individual situation and all of your options.