Failure to Follow Bankruptcy Rules | Non-Dischargeable Debts
When you’re facing serious financial challenges and have determined that personal bankruptcy is the best way to get a fresh start, you generally have two options—either permanently discharge debt in exchange for the relinquishment of certain assets (Chapter 7) or reorganize your debt over a three-to-five-year period (Chapter 13).
It’s important to understand that, even if you qualify for discharge in a Chapter 7 filing, there are still circumstances where you may not be allowed to permanently rid yourself of debt. When can the bankruptcy court deny your attempt to discharge a debt?
You Must Follow the Rules of Bankruptcy
Meeting the requirements of the “means test” does not give you an absolute right to discharge debt. You will be required to comply with all requirements set forth under the bankruptcy law:
- You must provide all mandatory information to the court, including tax documents.
- You must successfully complete an approved course on personal financial management.
- You may not be found to have hidden or destroyed any relevant records or books, or otherwise hindered your creditors in their efforts to protect their interests in the bankruptcy proceedings.
- You may not be found to have committed fraud, including perjury.
- You must be able to account for all assets.
- You may not be found to have violated any court order.
- You must not have filed a personal bankruptcy petition within a certain period of time of the current filing.
You May Not Discharge Certain Types of Debt
As a general rule, certain types of debt are either absolutely non-dischargeable or extremely difficult to discharge. These debts include arrearages for child support or spousal maintenance, as well as any other obligations to a former spouse arising out of a divorce or legal separation. Most tax liabilities are not dischargeable, and student loan debt can rarely be discharged.
Contact an Experienced Rockwall, TX Chapter 7 Bankruptcy Lawyer
At the Law Offices of Carrie Weir, all potential clients are entitled to a free initial consultation. To arrange an appointment to discuss your rights and options in bankruptcy, contact my office online or call 972-772-3083. I handle Texas personal bankruptcy filings in Kaufman County, Rockwall County, Collin County, Dallas County, Hunt County, and the surrounding counties.
