Section 523

Definition: Section 523 of the U.S. Bankruptcy Code specifies certain types of debts that cannot be discharged through bankruptcy. These “nondischargeable debts” remain the responsibility of the debtor even after bankruptcy proceedings are completed. The purpose of this section is to prevent the abuse of the bankruptcy system and to protect creditors in specific categories of obligations.

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Section 523 (Non-Dischargeable Debts)

Section 523: debts surviving bankruptcy. Key: certain taxes (3-year rule), DSOs, student loans (Brunner test: minimal standard + likely to persist + good faith), fraud (adversary proceeding within 60 days of 341), willful injury, DUI, criminal fines, and unlisted debts. Some automatic; others require creditor adversary. Brunner test in 11th Circuit (FL): extremely difficult standard. Creditor burden: preponderance (most).

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Reviewed by the attorneys at Barnes Walker, Goethe, Shea & Robinson, PLLC

Disclaimer: The information and opinions provided are for general educational, informational or entertainment purposes only and should not be construed as legal advice or a substitute for consultation with a qualified attorney. Any information that you read does not create an attorney-client relationship with Barnes Walker, Goethe, Shea & Robinson, PLLC, or any of its attorneys. Because laws, regulations, and court interpretations may change over time, the definitions and explanations provided here may not reflect the most current legal standards. The application of law varies depending on your particular facts and jurisdiction. For advice regarding your specific situation, please contact one of our Florida attorneys for personalized guidance.

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