Bankruptcy Information Kentucky Attorneys

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This is just one information page from our Kentucky Bankruptcy manual, which is condensed from 1600 words to 500.  You are missing vital information if you file a bankruptcy without knowing how to bankrupt some of these debts anyway.  Download it for free and visit our FAQ section!

THE SEVEN DEBTS YOU CAN’T DISCHARGE IN BANKRUPTCY 

AND HOW YOU CAN DISCHARGE THEM BANKRUPTCY ANYWAY 

The normal reason for contesting bankruptcy is that you listed one of the seven debts from section 11 United States Code 523 of the bankruptcy code that are supposed to be non dischargeable in bankruptcy. ALL OF THESE RULES CHANGE 10-2005 and it will be harder to file and less debts will be bankruptable the manual is now up to date through the changes.

1. Child Support and Alimony can be repaid in Chapter 13 bankruptcy but cannot be discharged in a Chapter 7.

2. Taxes over 2 years old are dischargeable in bankruptcy! Taxes must be 3 years old, you filed returns at least 2 years ago, no assessments within 240 days, you can avoid liens on homes in bankruptcy for the amounts over the unprotected equity in the home, there must be no fraud involved, and any offer in compromise or bankruptcy will increase time periods. If you want to discharge taxes in bankruptcy see our Appendix article on how to discharge taxes in bankruptcy.  In a Chapter 13 bankruptcy taxes may be paid back for a small percentage and penalties and interest waived. 

3. Federally Guaranteed Student Loans Bankruptcy changed October 1998 and 2005.  Bankruptcy now only allows hardship discharges but it is possible if you know how to answer the questions that will be asked of you.  Attorneys Doctors and others have gotten hardship discharges in bankruptcy but they knew how to claim hardship.   Bankruptcy court considers 3 factors.   

a. Whether you made good faith efforts to repay    (not required if you never had the money)

b. Your ability to repay now and in the immediate future

c. Whether it creates hardship to your family if you repay 

 4.  Debts due to theft or fraud. Are dischargeable in a Chapter 13.   Only relied on proven, material and intentional misrepresentations are fraud in a Chapter 7.   If banks make bad loans or failed to check facts it does not make debts non dischargeable in bankruptcy.   The lender has a hard burden to prove fraud.  However, a charge or cash advance over $1,000 or purchases over $1,000 for luxury items within 60 days before filing are assumed fraudulent so timing and amounts are important. 

5. Criminal Acts and Intentional Injuries are non dischargeable in bankruptcy.  However, if injured parties fail to file an adversary proceeding it is discharged in bankruptcy anyway.   Bankruptcy won't stop criminal courts from ordering criminal restitution.  Bankruptcy is only a defense in Civil Court.

6. Drunken Driving Accidents.   You can get your license back if you get a discharge in bankruptcy.  Drunk driving accident victim must file adversary actions in bankruptcy court and prove drunk driving or chance being forever barred from collecting and you get your license back.  (Learn how in the bankruptcy manual)

7. Marital Property Settlement Agreements to pay a debt.  Bankruptcy Court rarely alter these agreements.   But if one files often the other spouse files bankruptcy anyway.  Also filing may eliminate your obligation to pay the marital property settlement.      

If you have these debts, list them anyway there are ways to bankrupt many of them anyway contact your attorney.

The Bankruptcy Manual fully discusses how to bankrupt debts which many people and attorneys think are not bankruptable.   There are exceptions to almost every rule.   Download your free copy.

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