Recognize the power the Bankruptcy Code has to discharge certain debts. Are there any types of debt that the Bankruptcy Code will not discharge?
What will be an ideal response?
The effect the Bankruptcy Code has on the debtor's dischargeable debt is powerful. Under 11 U.S.C. §524(a)(1)(2), the discharge of debt through bankruptcy acts as a statutory injunction against any collection efforts the creditor asserts. In other words, not only is it unlawful for the creditor to pursue the debtor after the petition has been filed, it is equally, if not more, unlawful for the creditor to pursue the debtor post-discharge.
According to 11 U.S.C. §523, certain debts cannot be discharged through bankruptcy. For one reason or another, Congress deemed the discharge of certain debts to be against public policy. "Against public policy" means that Congress felt that absolving individual or business debtors of certain debts would not be in the interest of promoting the public good. These types of debts are viewed not merely as debts but as obligations.
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Answer the following statement true (T) or false (F)
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