It's true that not all unpaid amounts are discharged. Each chapter of the Bankruptcy Code has different rules concerning the debts to be discharged. In few cases, the defaulters are required to pay off the debts even after bankruptcy gets over. Whereas, in some cases the government has decided that certain categories of debts are not dischargeable for public policy causes such as debts owing to indecent conduct of the defaulter, such as the defaulter's drunken driving.
Altogether, in Chapter 7, 11, and 12, there are 19 types of liabilities are exempted from discharge.
The most widespread categories of non dischargeable debts include definite kinds of tax submissions, obligations for spousal or child support or allowance, obligations for cruel damages to individual or assets, obligations to legislative elements for penalties, obligations for majority of government sponsored or assured educational loans or benefit overpayments and obligations for definite accommodation charges.
Certain categories of debts such as debts distressed by scam or viciousness are not involuntarily exempted from the discharge. It is the creditors' duty to request the court to decide types of debts that would be exempted from discharge.
A Chapter 13 case provides relatively broader horizon of discharge of debts to the defaulters than in a chapter 7 case. Debts dischargeable in a chapter 13 comprise debts for determined and malevolent damage to assets and debts occurring from assets decisions in divorce or separation proceedings. Typically, a chapter 13 debtor gets a discharge once all the expenses are paid accepted by the court under the repayment plan. However, there are few restricted conditions in which the defaulter may ask the court to allow a hardship discharge albeit the defaulter has not succeeded to finish plan payments.
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