Arizona Bankruptcy Law - "Are all debts discharged in bankruptcy?"
The code provides that many specifically designated debts are not
dischargeable. 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 from the creditor. Also, student loans and a few
other debts are not dischargeable based upon public policy. 11 U.S.C. 523.
Arizona Bankruptcy Law - 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. Discharge disputes 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.
The Federal process of filing necessarily incorporates state law requirements. These state law requirements are
set forth in statutes, rules and case law opinions which frequently alter the operation of law. As a result of
these precedents, Arizona bankruptcy cases are unique to the state, as well as unique to each individual who
files. All alternatives provided by law may not be available because of differing individual financial histories
or prior case filings.
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