What Are the Debts That Can’t Be Discharged in a Maryland Bankruptcy? | The Law Offices of Thomas Maronick Jr. LLC

Many debts can be discharged during a Chapter 7 liquidation bankruptcy; however, there are some debts that can’t be wiped out during the bankruptcy process.

Dischargeable Debts

Debts that can be discharged in a bankruptcy include:

  • Credit Card Debt
  • Medical Bills
  • Lawsuit Judgments Against You
  • Most Debts Arising From Car Accidents
  • Obligations Under Leases and Contracts
  • Personal Loans and more

Nondischargeable Debts

First of all, debts that aren’t listed in the paperwork you file with the bankruptcy court will not be discharged. The reason is that the bankruptcy rules require that a creditor has to be given notice or knowledge of your bankruptcy filing. So, make sure that information on all debts is supplied to your Maryland bankruptcy attorney so that he or she can make sure that the debts are listed in the paperwork you file with the court. Of course, a Baltimore attorney will know if a debt can be discharged, but to be on the safe side, tell your attorney about all debts, no matter how large and how small, and include information on all of your debts in the paperwork that is filed with the bankruptcy court.

Certain taxes can’t be discharged. However, some taxes can be discharged. It depends on how old the tax debt is and when the tax debt was assessed by the taxing authority.

  • Child support and alimony can’t be discharged in a bankruptcy.
  • Student loans are not dischargeable. However, there is a hardship exception to this rule; but, it is rarely granted.
  • Fines, penalties, and restitution owed for breaking the law can’t be discharged.
  • Debts that come from someone’s death or injury as a result of intoxicated driving can’t be discharged.
  • Condo, coop, and homeowner’s association fees can’t be discharged in a bankruptcy.

Protect Your Future

Don’t go out, knowing that you are going to declare bankruptcy and run up your credit cards. Although credit card debt is dischargeable, credit card purchases made within 90 days of the bankruptcy filing are not dischargeable if the creditor objects.

  • Cash advances obtained shortly before the bankruptcy filing are not dischargeable if the creditor objects.
  • Debt obtained by fraud is not dischargeable if the creditor objects.

There is a strategy for dealing with non-dischargeable debts. A debtor can do what is called a “Chapter 20.” This means that the debtor files a Chapter 7 bankruptcy to get rid of debt that can be discharged and then files a Chapter 13, which is a reorganization of monthly payments, and allows more of the debtor’s cash to go toward the debt that must be carried.

Questions or Concerns?

Baltimore bankruptcy lawyer can help you to determine the best way to get rid of debt and out from under creditor calls if you are considering bankruptcy. An experienced Maryland bankruptcy attorney can devise a strategy for you that allows you to use the bankruptcy laws to your advantage. The consultation is free. The attorneys at The Law Offices of Thomas J. Maronick have experience handling Maryland bankruptcy cases. You can contact Thomas Maronick at 410.244.5068 or via our website for a free consultation.