There are a number of debts that cannot be discharged when you file for bankruptcy. These debts need to be discussed with an Iowa bankruptcy lawyer.
While filing bankruptcy under Chapter 7 will give you a fresh start on your financial life, there are some debts that you cannot discharge. Some of those debts include, but may not be limited to:
- Taxes owed the IRS
- Student loans
- Back child support
- Car loans
- Condominium association fees
- Fines/penalties owing to government agencies
- Debts incurred as a result of larceny or embezzlement
- Debts not reported in the bankruptcy filing
- Recent purchases of non-essential items
- Debts owed for luxury goods/services charged within 90 days of seeking bankruptcy protection
If you have chosen to file a Chapter 7 bankruptcy, you are not allowed to keep your assets. However, most of the exemptions allowed under federal and state law happen to be large enough to take care of a secured debt like a car loan. If the value of the item in question, say a car, is higher than the exemption you (the debtor) may need to sell it to pay your debt. These are things that need to be discussed with an Iowa bankruptcy lawyer.
Property taxes may not be discharged by bankruptcy. However, there are some federal taxes that may be, provided they meet certain specific conditions. For example: federal income tax may be discharged, provided it is more than three years old, that you filed the return more than two years before seeking bankruptcy protection and that you did not try to avoid paying on your taxes or filed a fraudulent return. This is a complex area, and to completely understand it, it is best to consult with an Iowa bankruptcy lawyer.
It should also be noted that if you have any debts or fines owing that accrued because of illegal behaviour, you will still be responsible for them when you declare bankruptcy. For example, if you were charged with driving under the influence, if you have a collection of traffic tickets or have court ordered restitution to pay etc.