Michigan Bankruptcy Lawyers - "Are all debts discharged in bankruptcy?":

The code provides that many specifically designated debts are not dischargeable by debtors or their bankruptcy lawyers. In general, nondischargeable debts relate to taxes owed to governmental units, amounts owed for alimony and child support, and debts owed to others related to commission of a crime. Other debts are included as well, and the common thread connecting many nondischargeable debts is the obligation was incurred without approval of the creditor or their bankruptcy lawyer. Also, student loans and a few other debts are not dischargeable based upon public policy. 11 U.S.C. 523.

Michigan Bankruptcy Lawyers - In Practice:

Nondischargeable debts must be repaid. There are 18 categories of debt excepted from court discharge granted in chapters 7, 11, and 12. A more limited list of exceptions applies to cases under Chapter 13, allowing for more generous discharge potential for debtors and their bankruptcy lawyers. Discharge disputes among bankruptcy lawyers are resolved by the court. Frequently, obligations created by consensual divorce settlements are disputed. The nature of the obligation, settlement terms and state law all impact dischargeability.

Bankruptcy lawyers must carefully review each debtor's financial affairs before suggesting any particular remedy. Because each client is unique, all alternatives may not be available. Also, bankruptcy lawyers often offer different opinions regarding available alternatives in the same circumstance, based on each bankruptcy lawyer's personal level of legal expertise. All potential debtors should consider the opinions of at least two, and preferably three consumer bankruptcy lawyers to discover all available alternatives.

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