Chapter 13 Bankruptcy in Massachusetts
Chapter 13 bankruptcy is the bankruptcy chapter that allows petitioners to set up a repayment plan to better handle their debt. Some debt under Chapter 13 will be discharged but certain types of debt cannot be discharged. Below are examples of which debt is non-dischargeable under the Chapter 13 bankruptcy code:
Certain Payments to Creditors
Where a debtor has attempted to cure a default on an unsecured or secured claim, that claim may not be dischargeable under a Chapter 13 bankruptcy filing. Consult with your attorney for more information on this type of debt.
Student Loans
Generally, student loans are not going to be dischargeable in Chapter 13 bankruptcy.
Operation of a Motor Vehicle While Intoxicated
As in Chapter 7 bankruptcy, debt incurred as a result of the operation of a motor vehicle or vessel while under the influence or intoxicated will likely not be discharged in Chapter 13.
Child Support
Child or other domestic support obligations will generally not be dischargeable in Chapter 13 bankruptcy.
Restitution
Where the debtor owes money due to a criminal fine or as restitution for damages to another party as a result of a crime committed, or willful or malicious injury, these debts will not be dischargeable in Chapter 13 bankruptcy.
Fraudulent Activity
Where a debtor has secured money services, property or refinanced credit by fraudulent means, that debt will not be discharged in Chapter 13 bankruptcy.
Failure to List a Debt
Similar to under Chapter 7 bankruptcy, any failure to list a debt will result in that debt not being discharged in bankruptcy. Keep in mind that it may be possible to amend a bankruptcy petition after the fact, that is, after you have already filed the petition. Also keep in mind that although you might be able to amend the original petition, this may cost you more in attorney’s fees and it is also possible that the time for amendment may have passed.
Generally, there are many other types of miscellaneous categories of debt that are not allowed to be discharged in Chapter 13 bankruptcy. The goal of this article is to explain to the reader some of the more common debts that are non-dischargeable under Chapter 13 bankruptcy. It is important to note that it is also possible that debt that is normally allowed to be discharged will be challenged by a creditor and that the results of this challenge might be that the debt will not be dischargeable. But, generally speaking, most debt falls into standard categories which, when fitting neatly into those categories will be partially discharged and the remainder repaid over the life of the repayment plan established through Chapter 13.
For more information about which debts are not dischargeable in Chapter 7 bankruptcy, read this article, “What Debt is Not Discharged in Chapter 7?“
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