Illinois Bankruptcy Lawyers - "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. Opposing bankruptcy lawyers tend to argue non-dischargeability expansively. Other debts may be considered non-dischargeable. The common thread connecting many court determinations of nondischargeability is based on the method of creation, that 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.

Illinois Bankruptcy Lawyers - 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 and their bankruptcy lawyers. Discharge disputes are resolved by the court after notice and hearing, once opposed bankruptcy lawyers present motions and arguments. Frequently, obligations created by consensual divorce settlements are disputed. The nature of the obligation, settlement terms and state law all impact dischargeability.

Requirements for discharge and confirmation are complex. Bankruptcy lawyers must carefully construct a financial history for each client before recommending any course of action. Because financial histories are unique, available options under the Code vary. Also, bankruptcy lawyers frequently arrive at different conclusions regarding available options, based on each bankruptcy lawyer's level of experience and expertise. All debtors who have questions regarding discharge and confirmation through the Illinois federal court system should compare the advice of several bankruptcy lawyers to establish the range of options available.

Back to Illinois Bankruptcy Lawyer FAQ topics and bankruptcy lawyer practice tips.