Whilst many debts are eligible to be discharged in bankruptcy, there are some debts not eligible to be discharged in bankruptcy.
- Child support
- Taxes due less than three years
- Student loans
- Criminal restitution
- Debts resulting from driving while intoxicated
- Debts arising from fraud
- Debts from substantial uses of credit cards just prior to filing bankruptcy
- Debts from willful and malicious damage to others or their property
Are there any other exceptions?
There are other smaller exceptions too.
The exceptions to discharge are often hard to understand and apply, and the way judges apply the exceptions varies from state to state.
This is an area where the advice of an experienced Minnesota bankruptcy attorney is usually required.
The collection agencies that try to collect on payday loans will try to tell you that the debt is fraud, but it isn’t.
- Remember, payday loans are dischargeable in bankruptcy, and it is very hard to prove that a debt is fraudulent
- The creditor must prove that at the moment the borrower took the money, the borrower did not intend to repay the loan
My clients are earnest people who borrow money to make ends meet; this isn’t fraud.
Contact Us at 612.724.4357 now and tell us how we can help you which debts are not eligible to be discharged in bankruptcy in Minnesota.