What Is Not Discharged In Chapter 7 Bankruptcy?

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The list of debts that may not be discharged during a Chapter 7 case are provided by Section 727 of the Code. This section contains highly technical rules for qualification of debts, yet the common thread connecting most non-dischargeable debts remains clear. For example, debts related to any of the following are generally not dischargeable:

  • debts owed to government authorities.
  • fines, taxes and penalties assed by courts of law.
  • credit obtained fraudulently.
  • amounts owed for child support.
  • judgments resulting from DUI, DWI.
  • liability for damages caused during the commission of a crime.

Also, debtors who knowingly falsify forms and schedules, or conceal property, or attempt to hinder the administration of the estate are subject to grave penalties for obstruction of justice. Included within the options available to the court, is the eventual dismissal of a Chapter 7 case with prejudice, which prevents discharge of all debts during the case at bar, and prevents refiling for a period of months.