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Miami residents who decide to file for Chapter 7 bankruptcy often mistakenly believe that all of their debts will be discharged. However, not all debts are discharged in a bankruptcy.

This means that even after a bankruptcy discharge, debtors will still be on the hook for certain debts based on the nature of the debts or the manner in which they were incurred, such as damages resulting from a debtor driving drunk and causing a wreck.

The types of non-dischargeable debts that are most common include:

— Debts not listed on the schedule filed with the court.

— Some tax claims.

— Child support and alimony arrearages.

— Student loans and benefit overpayments.

— Debts incurred for willful or malicious injuries or damages.

— Debts to government agencies for penalties and fines.

— Debts to some retirement plans with tax advantages.

— Co-op and condo fees.

— Debts from divorce property settlements.

In some cases, the courts will revoke a discharge at the request of the trustee or a creditor. This usually happens in cases of fraud on the part of the debtors, such as if they don’t disclose all the property legally belonging to the bankruptcy estate or other improper actions on their part.

Cases are subject to audit and the debtor is responsible for explaining misstatements to the court and providing any lacking documentation upon request. Under most circumstances, revocations must be filed within a year of the discharge or prior to the case being closed. Revocation is solely up to the court.

As you can see, there are complicated rules and regulations associated with bankruptcy filings. For best results, most Miami consumers should obtain professional legal advice when filing for bankruptcy in Florida.

Source: United States Courts, “Are all the debtor’s debts discharged or just some?” Dec. 17, 2014