The debts you can repudiate, and the ones you can’t.

Dischargeability in a nutshell

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             Generally, you can discharge or cancel any debt in a Chapter 7 liquidation proceeding, or reduce it in accordance with the rules of Chapter 13.  There are important exceptions, and often it may seem to a debtor that the exceptions overwhelm the rule.

 

             Non-dischargeable debts include debts for child and spousal support, many taxes, debts incurred as a result of the debtor’s fraud or theft, debts owed as restitution for drunk driving damages or other criminal acts, and most student loans.

 

             Dischargeability of debts is governed by Bankruptcy Code Chapter 5, §523.  You can click here to be taken to the full text of the law, but please be careful when you read it:  Some matters that seem to be clear may not be, and even bankruptcy lawyers and judges may disagree about how exemptions apply in particular cases.