Filing for Chapter 7 bankruptcy does not necessarily mean the end of your debts. Indeed, some debts cannot be touched by Tennessee bankruptcy proceedings. This article will discuss those debts and what you will still be responsible for paying off coming out of successful Chapter 7 proceedings.
When you finish your Chapter 7 bankruptcy, you will still be responsible for any creditors or debts that you fail to list on the schedules you file at the beginning of your bankruptcy. You will also still have to pay off student loans in most cases. Recent local, federal and state taxes owed will also remain on your list of debts owed.
Other debts you cannot discharge with Chapter 7 proceedings are child support and alimony back payments, government penalties and fines, court fees and debts owed because of a personal injury and/or wrongful death case relating to drunk driving. Debts that you still have on the books following a previous bankruptcy are also untouchable in Chapter 7 proceedings and so are overdue condominium fees.
Additional debts that are non-dischargeable include debts from fraud, debts related to a malicious or willful act, debts related to larceny, embezzlement and breaches of fiduciary duty and certain debts related to a divorce settlement agreement or divorce court order.
Because certain kinds of debts will remain after Chapter 7 bankruptcy, Tennessee residents may want to consider what kinds of debts they have and whether or not all the debts can be discharged. An experienced bankruptcy attorney can assist with analyzing what kinds of debts a particular individual has and whether or not Chapter 7 proceedings are the right match for his or her client in this regard.
Source: FindLaw, "Debts that Remain After a Chapter 7 Discharge," accessed Aug. 27, 2015