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Livonia Michigan Bankruptcy

Michigan Bankruptcy Blog

“L” is for Limits of Bankruptcy

Posted by Peter Behrmann, Esq. On April 16th

“L” is for Limits of Bankruptcy

Bankruptcy is a very powerful tool that allows honest people a fresh start. A bankruptcy discharge eliminates a person’s legal obligation to pay a debt that is discharged. Most, but not all, types of debts are discharged if the debt existed on the date the bankruptcy case was filed.

Limits of Bankruptcy – Debts that are automatically not discharged in Bankruptcy!
Some of the most common types of debts which are not discharged in bankruptcy or may be held non-dischargeable are:

  • Debts for most taxes;
  • Debts incurred to pay non dischargeable taxes;
  • Debts that are domestic support obligations;
  • Debts for most student loans;
  • Debts for most fines, penalties, forfeitures, or criminal restitution obligations;
  • Debts for personal injuries or death caused by the debtor’s operation of a motor vehicle, vessel, or aircraft while intoxicated;
  • Some debts which were not properly listed by the debtor;
  • Debts that the bankruptcy court specifically has decided or will decide in this bankruptcy case are not discharged;
  • Debts for which the debtor has given up the discharge protections by signing a reaffirmation agreement in compliance with the Bankruptcy Code requirements for reaffirmation of debts;
  • Debts owed to certain pension, profit sharing, stock bonus, other retirement plans, or to the Thrift Savings Plan for federal employees for certain types of loans from these plans;
  • Debts incurred on the basis of fraudulent acts;
  • A debt from willful and malicious injury to another or another’s property, or an intentional tort (conversion, assault, battery, etc.);
  • Debts from embezzlement, larceny or breach of trust; and
  • Debts arising from a marital property settlement agreement or divorce decree.

If you have any of these debts it is very important that you disclose these debts with your Bankruptcy Attorney so he or she can fully advise you on how the bankruptcy will affect the status of these debts that are limited from Discharge in your Bankruptcy.

Peter Behrmann is a Livonia Bankruptcy Attorney.  From my Livonia, Michigan location, I represent clients throughout Metro Detroit and beyond, including Garden City, Wayne, Westland, Redford, Dearborn, Taylor, Ann Arbor, Belleville, Northville, Novi, Farmington, Farmington Hills, Plymouth, Canton, and the Counties of Wayne, Oakland, Livingston, and Washtenaw. My practice is limited to helping consumers like you file Chapter 7 and Chapter 13 Bankruptcy, and Foreclosure Prevention.
Photo Credit: Leo Reynolds
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