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What debts are not typically discharged in a Renton, WA bankruptcy?
Questions about Washington bankruptcy law?
Call today to find out if you can qualify for bankruptcy protection.
(253) 458-4038
What debts are not discharged in a Renton, WA bankruptcy?
Many clients who call our offices to learn if they can qualify for a Washington State bankruptcy also have questions about what kinds of debts may not be discharged or wiped out in a Renton, WA bankruptcy.
If you have questions about whether or not you can qualify for bankruptcy protection or whether or not some of your debts will qualify for discharge, we invite you to call our offices for an initial consultation. You can talk to one of our Renton bankruptcy lawyers who will review your debts and your financial situation and then help you to understand your legal rights and options.
Please also understand that every case is very fact specific. The debts detailed below and discussed are only general guidelines, and some debts are easily mischaracterized. To truly understand whether or not certain debts can be discharged, it's best to speak with an experienced Renton bankruptcy attorney.
Chapter 7 Bankruptcy
DEBTS NOT DISCHARGED IN A CHAPTER 7 BANKRUPTCY
1. Traffic fines are not discharged in a Renton Chapter 7 bankruptcy.
The most common examples of traffic fines are speeding tickets and parking tickets.
2. Student Loans are typically not discharged in a Renton Chapter 7 bankruptcy.
There are, however, some important exceptions. Please see our page on student loans in bankruptcy.
3. Secured debts are typically not discharged in a Renton Chapter 7 bankruptcy.
Such as loans for vehicles, houses, furniture, and jewelry if you intend to keep the collateral (the thing you purchased with the loan). However, you can give up the items and discharge the whole debt in bankruptcy that way. There are other options, such as reaffirmation, redemption, or a “ride through” that you should discuss with us.
4. Domestic support obligations cannot discharged in a Renton Chapter 7 bankruptcy.
The most common examples are child support, alimony, or something the divorce court ordered you to pay, for example marital credit card bills (on this last one, however, your ex has to object).
If you are behind, however, you can often use a chapter 13 plan to catch up and pay them off.
5. Debts obtained by fraud are cannot be discharged in a Renton Chapter 7 bankruptcy.
Such as misrepresenting income or assets when applying for a loan, or taking out a loan or using a credit card with the intention of discharging it in bankruptcy.
6. Criminal fines or restitution also cannot be discharged in a Renton Chapter 7 bankruptcy.
These are fines that are imposed when you plead guilty to a criminal charge and/or are ordered to pay money to the victim of the crime.
7. Certain types of personal injury claims are not discharged in a Renton Chapter 7 bankruptcy
Claims against you for death or personal injury caused as the result of you driving a motor vehicle, boat, or aircraft while under the influence of drugs, alcohol, or other substances. (Apparently, however, damages caused while driving a horse-drawn wagon while under the influence do not fall in this category, says one court).
8. Most taxes are typically not discharged in a Renton Chapter 7 bankruptcy.
There are exceptions for certain income taxes. If you have questions about taxes, we can analyze your situation and find out what your options, such as paying them back in a chapter 13 bankruptcy plan. While penalties are not discharged in chapter 7, they can be discharged through a chapter 13 plan.
Chapter 13 Bankruptcy
DEBTS NOT DISCHARGED IN CHAPTER 13 BANKRUPTCY
Like a chapter 7 bankruptcy, the following debts are generally not discharged in a Renton Chapter 13 bankruptcy.
You can, however, propose a Chapter 13 plan that will pay them back while you are protected by the Court.
1. Traffic fines are not discharged in a Renton Chapter 13 bankruptcy.
The most common examples of traffic fines are those that come from speeding tickets and parking tickets.
2. Student loans or school loans are typically not able to be discharged in a Renton Chapter 13 bankruptcy.
There are, however, some important exceptions. Please see our page on student loans in bankruptcy.
3. Secured debt are not discharged in a Renton Chapter 13 bankruptcy.
These include loans for vehicles, houses, furniture, and jewelry if you intend to keep the collateral (the thing you purchased with the loan). you can, however, give up the items and discharge the whole debt in bankruptcy that way.
In a chapter 13 plan, however, you can often “cram down” what you owe on a vehicle, furniture, or jewelry to its current retail value, and decrease your interest rate too! You cannot do this with houses generally. But you can sometimes strip off a 2nd mortgage if there is no value in your house more than the amount you owe on your 1st mortgage!
You can also use a chapter 13 plan to cure missed payments over time, and stop a foreclosure
4. Domestic support obligations cannot usually be discharged in a Renton Chapter 13 bankruptcy.
The most common examples are child support and alimony. But they can also include something that a divorce court ordered you to pay, for example marital credit card bills or other debts. On this last one, however, your ex must to object to their discharge.
If you are behind, however, you can often use a chapter 13 plan to catch up and pay them off.
5. Debts obtained by fraud are not discharged in a Renton Chapter 13 bankruptcy.
Some examples of these include misrepresenting your income or assets when applying for a loan, or taking out a loan or using a credit card with the intention of discharging it in bankruptcy. In reality, however, any debt fraudulently incurred can be challenged and prohibited from being discharged.
6. Criminal fines or restitution are not able to be discharged in a Renton Chapter 13 bankruptcy.
If you are convicted of a crime and the court orders you to pay fines, costs, or restitution to the victim, these obligations cannot be discharged. But you may be able to pay these off through a chapter 13 plan over time, while the Court protects you.
7. Certain types of personal injury claims are not discharged in a Renton Chapter 7 bankruptcy
Claims against you for death or personal injury caused as the result of you driving a motor vehicle, boat, or aircraft while under the influence of drugs, alcohol, or other substances. Interestingly, however, according to at least one court, damages caused while driving a horse-drawn wagon while under the influence do not fall in this category.
These can, however, often be paid back through a chapter 13 plan while the Court protects you.
8. Most tax debts are typically not discharged in a Renton Chapter 13 bankruptcy.
There are exceptions for certain income taxes, depending on very specific criteria. For example, please see our page on back taxes.
If you have questions about back taxes, we can analyze your situation and help you to understand your options. For example, it may be in your best interests to still file and then them back through a chapter 13 plan.
Renton Bankruptcy Lawyers
(253) 458-4038
Renton Bankruptcy Lawyer David M. LuxCall now to learn if a Washington State bankruptcy can help you and your family.