The most important factor in obtaining a financial fresh start through bankruptcy is with the discharge of your debts upon completion of your bankruptcy case. When a debt is discharged, your obligation to pay it is eliminated. However, not every type of debt can be discharged through bankruptcy. Known as non-dischargeable debt, these debts for one reason or another will survive the bankruptcy process and follow you afterward. To get a full understanding of what debts are dischargeable in a Nevada bankruptcy, contact an experienced Nevada bankruptcy lawyer. Below, we have provided a brief rundown of the types of debts that cannot be discharged in Nevada.
Types of Non-Dischargeable Debt in Nevada
There are a number of forms of debt that cannot be discharged through bankruptcy, and each of them has varying reasons why discharge is not available. If you have filed for a chapter 7 bankruptcy, the court may simply rule certain debts are not discharged and you will continue to be responsible for them. In a chapter 13 bankruptcy, any non-dischargeable debt should be accounted for in your bankruptcy plan.
The most common type of non-dischargeable debt is student loans. In most cases, you will be unable to discharge these debts due to federal law. Student loan debt is not dischargeable on the theory that it is unfair to your lender. Unlike assets that can be repossessed, you will still maintain your knowledge and your degree after a bankruptcy discharge. While the discharge of student loan debt is rare, it is not impossible.
While bankruptcy can give you a chance at a new life financially, that doesn't mean you can use it as a tool to avoid your secured debts while holding onto your possessions. You can discharge your secured debt if agree to surrender the secured property, but if you want to keep it you will remain obligated on your debt.
Back Child Support and Alimony
Another type of debt that cannot be discharged is defaulted child support or alimony payments. Nevada does not allow for this type of debt to be discharged on public policy grounds, as this debt is intended to provide for the basic needs of the debtor's children and former spouse.
If you attempt to defraud your creditors or the bankruptcy system, the court will not reward you for it. If you have debts that result from fraud, false pretenses, or false representation, that debt may not be dischargeable. It is important to note that the court will not rule the debt to be non-dischargeable on their own. Your creditor will have to file a lawsuit within the bankruptcy proceeding in order to object to the debt being discharged.
Debts that Aren't Listed on your Petition
Before you can discharge a debt, you must give your creditors notice of your bankruptcy filing. That means listing the debt and the creditor that you owe in the asset schedule of your bankruptcy petition. The purpose of these schedules is to list all of your debts and to put your creditors on notice that their rights may be affected. If you fail to list the debt in your petition, the creditor will have no way of knowing of your intentions. That's why any debt you fail to list on your petition is not dischargeable.
Discuss Your Discharge Options with a Nevada Bankruptcy Attorney
These are only a few of the most common types of debt that are not dischargeable in bankruptcy. Some other examples include certain property taxes, condominium dues, and even debts arising from a conviction for driving under the influence. The list of potentially non-dischargeable debt can be long, so it is important to discuss your options with an experienced attorney. If you are considering bankruptcy in Las Vegas, contact the Nevada bankruptcy attorneys at Vohwinkel Law today. You can count on their experience and guidance, and the initial consultation is free.