Non-dischargeable Debts
Aurora Illinois Bankruptcy Lawyers & Attorneys
Jesse Barrientes: Okay. How about since we're talking about all those things – It's important for people in Aurora to know, because those are some of the questions that I get as well. People ask a lot of times about student loans, and about taxes, and those kinds of things. We've already talked about child support, and maintenance, formerly called "alimony", would also fall in to the same thing that you talked about child support earlier. What about student loans, and taxes, and parking fines for that matter, speeding tickets, those kinds of things?
David Siegel: Sure. What you're mentioning are basically non-dischargeable debts, debts that are not eliminated in a Chapter 7 bankruptcy. Student loans are definitely not eliminated unless there's an extreme hardship, and that has to be petitioned in the court through an adversary. That would be someone who when they took out the loan were okay, but now subsequently they don't have the ability to work. Maybe they've become disabled. Maybe they have an illness. There has to be some reason why they can't pay back this loan. It's a difficult process to get that approved, seldom seen, so plan on student loans sticking around.
Jesse Barrientes: Okay.
David Siegel: Same thing with taxes if they're recent. A tax has to be more than three years old, and there's a couple other requirements, but basically a recent tax is still going to be due and owing. An older tax, more than three years old, possibly can be eliminated.
Jesse Barrientes: What about – would the same thing apply to, for example, the taxes on my real estate?
David Siegel: No. Real estate taxes run with the property, so if you're going to keep the property, you have to maintain those real estate taxes. If you're going to walk away from the property, you're not going to responsible for the real estate taxes. That's going to be for the next owner, or for the bank.
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See Also:
Chapter 7
Misconceptions about Chapter 7
Life after Chapter 7 bankruptcy
Privacy is protected in bankruptcy
Household income qualifications
Converting Chapter 13 to Chapter 7
Converting Chapter 7 to Chapter 13
Chapter 13
Using Chapter 13 to save a home
Choosing Chapter 13 versus Chapter 7
Debt consolidation & late fees
Administrative fees & the bankruptcy trustee
Chapter 13 payment plan dismissal
