What is a bankruptcy discharge?
A bankruptcy discharge under under sec 1328 or sec 727 will permanently eliminate debts when the person filing bankruptcy completes all the requirements for their case. Generally, a discharge will cover things like credit cards, repo fees, foreclosure fees, medical bills, personal loans, bank fees/penalties.
There are however, quite a few items that are NOT included in a bankruptcy discharge under 11 USC 523 that could be surprising. Some of those items include:
- Criminal fines and penalties
- Child Support/Alimony
- Most Taxes
- Student Loans
- Fraud
- Theft
- Credit Card Charges within 70 days of filing bankruptcy
- Loans taken out with no intention of paying them back
- Intentional harm to someone or their property
- Debts taken out AFTER filing
- Judgments against real estate.