Home » Articles » Finance / Wealth

Bankruptcy and Non Dischargeable Debts

Bankruptcy and Non Dischargeable Debts
"""When filing for bankruptcy, some debts are dischargeable while others are not. Those that are dischargeable indicate that you are exempt from meeting your obligations for them. The following are examples of obligations that are typically not dischargeable:

Typically, misdemeanors are not discharged during bankruptcy. Misdemeanor offenders typically receive a fine, a detention sentence in the local or county jail, or both. Fines for misdemeanors include traffic tickets. For example, if you have accumulated $500 in fines, they are not dischargeable. If you pay the $500 fine with a credit card and then file for bankruptcy, the credit card bill may be a dischargeable debt, dependent on when the fine is paid. This demonstrates the practical, real-world effects of bankruptcy on debt repayment.

Similar to misdemeanor penalties, felony fines are not dischargeable in bankruptcy. The difference between the two is the form of jail to which you will be sent if you are sentenced to jail. You will be sent to a federal or state penitentiary for a felony offense. According to misdemeanor laws, you will be sent to a local or national penitentiary.

Property taxes are a unique circumstance. In some instances, they will be released. This is typically the case if the taxes were lodged more than a year prior to the bankruptcy filing. In actuality, however, even if your property taxes are discharged, the effect on you is insignificant. This is due to the fact that you will still have a tax attachment on your property, meaning it cannot be sold or transferred until the taxes are paid. In other words, as far as property taxes are concerned, you are essentially in the same position as if you had never filed for bankruptcy.

Most individuals believe that income tax debts cannot be discharged. However, it depends greatly on the circumstances. For instance, if the debt is sufficiently old and other conditions are met, you will be able to discharge it. However, if the debt is more recent, you may be unable to do so. Additionally, depending on the jurisdiction in which you file for bankruptcy, state taxes may or may not be eligible for discharge. When dealing with tax debts, it is generally advisable to consult with a tax attorney and/or accountant. In the event that you have committed income tax fraud, however, they are never dischargeable.

" - https://www.affordablecebu.com/
 

Please support us in writing articles like this by sharing this post

Share this post to your Facebook, Twitter, Blog, or any social media site. In this way, we will be motivated to write articles you like.

--- NOTICE ---
If you want to use this article or any of the content of this website, please credit our website (www.affordablecebu.com) and mention the source link (URL) of the content, images, videos or other media of our website.

"Bankruptcy and Non Dischargeable Debts" was written by Mary under the Finance / Wealth category. It has been read 144 times and generated 0 comments. The article was created on and updated on 03 June 2023.
Total comments : 0