While the majority of debts can be discharged through the Chapter 7 bankruptcy process in New York, this is not true for every debt type. There are also several general barriers in place that can halt your ability to discharge any debts. If you violate bankruptcy court rules or procedures, then a Chapter 7 discharge could be denied.
In addition to the above-listed general reason for denial, there are also specific categories of debts that canâ€™t be discharged. You should be prepared for your New York bankruptcy by knowing ahead of time whatâ€™s likely to be eliminated and what you will still be responsible for even if the bankruptcy goes through.
These categories of items cannot be discharged in Chapter 7 bankruptcy:
- Debts owed to former spouses because of separation or divorce
- Particular taxes and debts owed to government agencies because of fines and penalties
- Student loans (although there are some rare exceptions to this rule)
- Child custody and support attorney fees
- Court penalties or fines
- Debts owed to some retirement plans with tax advantages
- Homeowner association fees
- Debts caused by personal injury accidents you caused while intoxicated
Debts That Can Be Denied Discharge on Objection
Creditors might also object to certain items you intend to discharge. Usually, this requires that motions are filed with the court in order to initiate hearings to determine whether the debts are dischargeable. Some of the most common items falling under this category include:
- Cash advances receive by a debtor within 70 days of filing for bankruptcy that total $925 or more (unless you can prove you had intentions to pay this back)
- Debts obtained by false pretenses or fraud
- Debts obtained due to malicious and willful injury to another person or their property
- Credit card debts for luxury goods within 90 days of bankruptcy filing and totaling more than $650.
If you are considering bankruptcy, then you should consult with an attorney. An experienced lawyer will be able to review your debts and determine which debts are eligible for discharge and which are not. Jayson Lutzky offers free in-person consultations at his 183rd Street, Bronx office. Call 718-514-6619 to schedule an appointment and visit www.MyNewYorkCityLawyer.com to learn more about attorney Lutzky.