Which Debts Are Wiped Out in a Bankruptcy

e. Recent cash advances. If you get cash advances from anyone creditor totaling more than $825 under an open-ended consumer credit plan within the 70 days before you file for bankruptcy, the debt is non-dischargeable. “Open-ended” means there’s no date

when the debt must be repaid, but rather, as with most credit cards, you may take forever to repay the debt as long as you pay a minimum amount each month.

f. Debts Arising From Debtor’s Willful and Malicious Acts. If the act that caused the debt was willful and malicious (that is, you intended to inflict a specific injury to person or property), then the debt isn’t dischargeable if the creditor successfully objects. However, for reasons probably related to ignorance of their rights, creditors don’t often object in this situation.

Generally, any crimes that involve intentional injury to people or damage to property are considered willful and malicious acts. Some examples are assaults, rape, intentionally setting fire to a house (arson), or vandalism. Your liability for personal injury or property damage the victim sustained in these types of cases will  almost always be ruled non-dischargeable. Other acts that would typically be considered to be willful and malicious include:

  • kidnapping
  • deliberately causing extreme anxiety, fear, or shock
  • libel or slander, and
  • illegal acts by a landlord to evict a tenant, such as
  • removing a door or changing the locks.

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