Boston Bankruptcy Lawyer

Limits of Chapter 11 Bankruptcy

Like all types of bankruptcy, Chapter 11 is not capable of discharging all of the debts that a business may incur that do not become part of the repayment plan. Bankruptcy does not solve all problems. For more information on filing bankruptcy, contact a Boston bankruptcy lawyer at Josh Spirn & Associates by calling 1-800-975-5346.

Non-Dischargeable Debts

Under Chapter 11 Bankruptcy, debts for alimony and child support cannot be discharged. In addition, taxes owed to the government cannot be discharged. These are not voluntary debts as much as they are obligations to other people. Educational benefit overpayments or loans that were made or guaranteed by a governmental unit cannot be discharged either. They must be repaid in full. The same is true for debts that are due for willful and malicious injury by the debtor to another entity or to the property of another entity. If the company has debts due to the death or injury of another caused by the debtor’s operation of a motor vehicle while intoxicated, these debts must be paid as well. The debtor is liable for this type of debt to the extent that it is not paid in the Chapter 11 case.

Dischargeable Debts

While it is true that many debts cannot be discharged, some debts can be discharged when not included in the repayment plan if the creditor doesn’t actually ask for the debts not to be discharged. This includes debts for money or property that were obtained under false pretenses and debts for fraud or defalcation while acting in a fiduciary capacity. Also, debts that were incurred due to a willful or malicious injury by the debtor to another entity or to the property of another entity or to the property of another are included in this group.

Contact a Boston Bankruptcy Lawyer

If your business is having serious difficulties paying all of the bills every month, contact the Boston bankruptcy lawyers of Josh Spirn & Associates at 1-800-975-5346 to learn more about how bankruptcy can benefit you.