List some types of debts that are not affected by the discharge of a bankrupt debtor.

Question

What will be an ideal response?

Answer 1

Students' answers may vary. The following debts are not affected by the discharge of a bankruptcy: 1) Those that are due as a tax or fine to the United States or any state or local unit of government, 2) those that result from liabilities for obtaining money by false pretenses or false representations, 3) those that arise out of a debtor's purchase of more than $675 in luxury goods or services on credit from a single creditor within 90 days of filing a petition (presumed to be nondischargeable), 4) those that are cash advances in excess of $950 obtained by use of a credit card or a revolving line of credit at a credit union and obtained within 70 days of filing a bankruptcy petition (presumed to be nondischargeable), 5) those that were not scheduled in time for proof and allowance because the creditor holding the debt did not have notification of the proceeding even though the debtor was aware that he owed money to that creditor, 6) those that were created by the debtor's larceny or embezzlement or by the debtor's fraud while acting in a fiduciary capacity, 7) those that are for domestic support obligation, unless excepting them from discharge would impose an undue hardship on the debtor's dependents, 8) those that are due for willful or malicious injury to a person or his property, 9) those that are educational loans, 10) those that are judgments arising out of a debtor's operation of a motor vehicle while legally intoxicated, 11) those that are debts incurred to pay a tax to the United States that would not be dischargeable, or 12) those that are property settlements arising from divorce or separation proceedings that are not covered by the support provisions that are priority claims.