What debts are not dischargeable in Chapter 7 Bankruptcy?

In Michigan, there are certain debts that are not dischargeable under Chapter 7 Bankruptcy. These debts are known as non-dischargeable debts. These include debts derived from personal injury caused by the debtor’s negligence or willful misconduct, certain taxes, domestic support obligations, and debts obtained by false pretenses, fraud, or defalcation while acting in a fiduciary capacity. Debts that are associated with alimony, child support, and separate maintenance are not discharged either. This means the recipient will still be responsible for repayment. Additionally, debts for educational loans and certain governmental obligations, such as taxes or fines due to a violation of the law, cannot be discharged in a Chapter 7 Bankruptcy. It should be noted that any debt resulting from a lien on the debtor’s property can also not be discharged. This would include loans obtained for the purchase of a house, car, or other property. The lien will remain attached to the asset, and the debtor will be responsible for repayment of the loan after the bankruptcy has been concluded. Lastly, inheritance money and other nontaxable income received within 180 days of filing bankruptcy cannot be discharged. While it is not illegal to spend inheritance money before filing bankruptcy, any monies spent on non-essential items may be viewed as an attempt to defraud creditors and will not be considered for discharge.

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What debts are not dischargeable in Chapter 7 Bankruptcy?

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