What Bankruptcy Will Not Do

Wisconsin Asset Protection Attorney

Milwaukee ● Madison ● Oshkosh

Many debts can be eliminated through bankruptcy. Bankruptcy will take care of credit cards, medical bills, utilities bills, unsecured loans, pay day loans, and most other types of debt. However, certain debt cannot be eliminated through bankruptcy. These types of debts are called “non-dischargeable debts.”

Contact an asset protection lawyer at Debt Advisors, S.C. in Wisconsin to learn what you need to know about what types of debts cannot be eliminated through bankruptcy. If you file a Chapter 7, you will still be responsible for certain types of debts after the bankruptcy. If you file a Chapter 13, you can repay non-dischargeable debts through the debt consolidation.

There are many types of non-dischargeable debts:

Taxes: Income tax debt will not be eliminated unless the:

• tax is more than three years old;
• tax return was filed on time;
• tax return was correct.

If you filed the tax return late, but filed more than two years before you filed bankruptcy, you may be able to eliminate the debt. Attorneys Chad Schomburg and Mike Georg can advise you on whether your tax debts can be resolved with a bankruptcy.

Student Loans: Money borrowed for your education cannot be eliminated through bankruptcy. The 2005 bankruptcy code admendments strengthened this exception to discharge.

Marital Debts: You cannot eliminate debts that you are directed to repay by a divorce or separation agreement in a Chapter 7 bankruptcy. However, Chapter 13 consolidation can help you with this type of debt. Mike and Chad can explain how a Chapter 13 can help you resolve this sort of debt.

Child support and Alimony: Child support and alimony cannot be eliminated by filing a bankruptcy. If you fall behind on these types of obligations, you can consolidate and repay delinquent child support through a Chapter 13 for the amount you fell behind.

Recent Credit Card Purchases and Cash Advances: Consumer debts owed to a single creditor are unlikely to be eliminated if the debt:

• totals more than $500.00; and
• was incurred within 70 days of filing the bankruptcy.

Mike and Chad can explain to you how you can avoid this issue.

Fraud: Debts incurred by a fraudulent act or by making false representations cannot be eliminated through bankruptcy. The creditor must file a request with the court to have the debt declared non-dischargeable. The bankruptcy judge will then rule on the creditor’s request. If you are not sure if you incurred debt by way of fraud, you ought to speak with Chad and Mike before you decide how to proceed.

Fines and Citations: Fines for breaking the law cannot be eliminated through a bankruptcy. For example, traffic tickets, criminal restitution, and parking tickets will survive a bankruptcy filing.

Intentional Torts: Debts caused by a willful or malicious injury to another person may not be eliminated through bankruptcy. The creditor must file a request with the court to have the debt declared non-dischargeable.

Operating Vehicle while Intoxicated: Debts for injury or death caused by driving under the influence of alcohol are not eliminated in bankruptcy.

If you have questions about asset protection and the bankruptcy process, complete our secure online evaluation form or call today to schedule a free consultation with Mike or Chad. We have offices throughout Wisconsin, including Milwaukee, Madison, and Oshkosh. You can hire our office for $100.00 to start. We will set up a reasonable plan to enable you to pay the balance of the fees while we work on your case.

We are a Debt Relief Agency. We help people who are in need of asset protection file for relief under the Bankruptcy Code.