Virginia Bankruptcy Law - "Are all debts discharged in bankruptcy?"

The code provides that many specifically designated debts are not dischargeable. In general, nondischargeable debts relate to taxes owed to governmental units, amounts owed for alimony and child support, and debts owed to others related to commission of a crime. Other debts are included as well, and the common thread connecting many nondischargeable debts is the obligation was incurred without approval from the creditor. Also, student loans and a few other debts are not dischargeable based upon public policy. 11 U.S.C. 523.

Virginia Bankruptcy Law - In Practice

Nondischargeable debts must be repaid. There are 18 categories of debt excepted from court discharge granted in chapters 7, 11, and 12. A more limited list of exceptions applies to cases under Chapter 13, allowing for more generous discharge potential for debtors. Discharge disputes are resolved by the court. Frequently, obligations created by consensual divorce settlements are disputed. The nature of the obligation, settlement terms and state law all impact dischargeability.

Be aware that all options are not available to all debtors. The availability of alternatives depends on several factors. State & federal laws change frequently through the legislative process and through court interpretations. Each debtor presents a unique financial history and assortment of debts. Local rules and customs vary. Nevertheless, all debtors gain the maximum benefit available similarly: careful planning and selection of options before filing.

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