Other Debt

Other Debt

You may have many types of debts weighing heavily on you. Although most of these debts are dischargeable in bankruptcy, there are a few exceptions.

The most common dischargeable debts are credit cards, medical bills, lease and contract obligations, personal loans and promissory notes.

The most common nondischargeable debts are spousal and child support payments, certain tax debts, governmentally imposed criminal fines and penalties (like parking tickets or moving violations), and any debts not set forth in a debtor's filed bankruptcy schedules or lists.

There is a third category of debts that are sometimes dischargeable and this includes student loans, some IRS income taxes, and debts from prior lawsuits. The bankruptcy court may have leeway to decide whether or not those debts are dischargeable based on the debtor's circumstances. For instance, if your student loans are causing a tremendous burden and you have made a good faith effort to pay them back, they may be discharged. If you have owed regular income taxes for more than three years, and the IRS has not reassessed the amount in the last 240 days, they may be discharged.

You can consult with a LegalZoom attorney about your debts to determine whether or not they can be discharged in bankruptcy.