Picking up from where we left off in Non-Dischargeable Debt & Bankruptcy: What You Need to Know (Pt. 1), below we will continue our discussion of the specific types of debt that will persist despite filing for bankruptcy.
Being aware of what debt you may still be obligated to repay after a bankruptcy case is crucial to having a realistic expectation of:
- What filing for bankruptcy can do for you
- What you may need to plan for after bankruptcy in order to avoid becoming overwhelmed with debt in the future (and potentially putting yourself in a position to have to file for bankruptcy again).
More Types of Non-Dischargeable Debt
- Recent income tax debt – If you’ve failed to pay income taxes at any point within the past three years, you will still be obligated to pay back this debt despite filing for bankruptcy.
Here, it’s also critical to point out that recent income tax debt is not the only type of tax-related non-dischargeable debt that can exist. Other tax debt may also be non-dischargeable with bankruptcy, so it’s best to discuss your case with an experienced attorney to find out if your tax debt will persist after bankruptcy.
- Certain debts accumulated within 60 days of filing for bankruptcy – If you run up your credit card debt, accruing more than $1,150 of new charges, within 60 days of filing for bankruptcy, this new debt will typically not be discharged through a bankruptcy case.
Similarly, any debt associated with a loan or a cash advance that exceeds $1,150 will also be considered to be non-dischargeable debt.
- Debt associated with acts of fraud – If you committed any act of fraud and accumulated some debt through this fraudulent behavior, this debt will also not be discharged through a bankruptcy case.
For example, if you accumulate debt as a result of lying to creditors, you will still be legally obligated to repay any and all of these debts after your bankruptcy case.
There may be other debts that will not be discharged through a bankruptcy case, so it’s critical to discuss your debt and financial situation with an experienced attorney to determine whether filing for bankruptcy is the best option for you.
Colorado Bankruptcy Lawyers at the Law Office of Jon B. Clarke, P.C.
If you are overwhelmed by seemingly insurmountable debt and are looking for a financial fresh start, contact the trusted Colorado debt relief and bankruptcy lawyers at the Law Office of Jon B. Clarke, P.C.
For more than 35 years, Mr. Clarke and his diligent support staff have been successfully helping our clients resolve even the most complex bankruptcy cases for both individuals and businesses alike. Our experienced legal professionals are committed to providing each of our clients with the personalized debt relief assistance they need, and we will work tirelessly to ensure that our clients’ cases are resolved as favorably and efficiently as possible.
Contact Us Today
For a thorough assessment of your situation, along with expert advice regarding the best manner in which to move forward to unburden yourself from debt, call us at (866) 916-3950 or email us some details about your situation by clicking here.