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As a general proposition of law. all debts may be eliminated
through discharge unless specifically excepted by statute. The
particular Code section that delineates nondischargeable debts in
Chapter 7 cases use three broad categorical prohibitions, as well as a
number of other particular exceptions. Debts that cannot be discharged
survive Chapter 7 as if untouched, and remain due, payable, and
subject the debtor to the pains of court collection.
Few Exception to Chapter 7 Bankruptcy Non-dischargeability
Rules
Liability for taxes must be paid in all circumstances, unless the
exception itself is subject to a narrowly focused exception.
Similarly, fines levied by governmental authorities (federal, state,
county, city and taxing districts) cannot be discharged. Examples
include convictions for fraud, deception and embezzlement, and the
related fines, restitution and penalties resulting from a criminal
conviction. A hybrid category of exceptions covers debts created by
operation of law, including statutory liens, tort liability, and
restitution for damages and injuries caused while under the influence
of drugs or alcohol. Exculpation of civil liability for negligence
through appeal may convert nondischargeble debts in to dischargeable
items.
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