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St Louis Bankruptcy: Are There Any Debts That Cannot Be Discharged In A Bankruptcy?

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Yes, there a few debts that are described as non-dischargeable. In other words, they are considered to be debts that the court will not knock out. And the reason why the court will not get rid of them is because there is a certain law or public policy that prevents them from doing so.

For example, back child support cannot be discharged. So if you are in arrears to either the state or to the other parent directly, then you would still have to make arrangements to pay those debts if you file a St Louis Chapter 7 (or the arrearage would be paid back over a period of years in a St Louis Chapter 13).

Student loans are another example of debts that cannot be knocked out by way of a Missouri bankruptcy. This is of course unfortunate, because the single largest unsecured debt that Americans have today is in the form of student loans. There is room to be hopeful that such debts will in fact be dischargeable in the future (Congress is getting a lot of heat from voters about the subject). But for right now, they cannot be discharged. However, a Ch13 will defer those loans for between three to five years.

Also, the general rules state that tax debt cannot be discharged. However, there are a few wrinkles and loopholes when it comes to taxes. If the tax debt in question is three years or older, a return has been filed more than two years ago, and there have been no audits done for that particular tax year, then the debt can in fact be discharged.

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So let’s take a look at an example: let’s say you owe $4,000 to the IRS from 2008; you filed your tax return for 2008 in early 2009; and there have been no amendments made to the return, and the IRS hasn’t audited you for that year. If this was your particular set of facts, then a St Louis bankruptcy would discharge the 2008 tax burden.

As you can see, even when the court rules a certain debt non-dischargeable, there are a few options built into bankruptcy that can still relieve some of the burden. But the best way to figure out what chapter is right for you is to set up a consultation to meet with us!!

The affordable St. Louis bankruptcy attorneys at Brinkman & Alter, LLC have been saving and protecting people’s assets for years. Our goal is to make sure that you keep the assets and property you want, discharge the debts that you want to get rid of, and do it all at an affordable cost to you. All phone conversations and office consultations are free of charge.