Debt after discharge

[maclelland]

I searched the forum and did not see anything specifically related to this:

I filed ch7 pro se in early April '10. I had no creditor objections by the due date. My discharge was granted...CHEERS! Upon reading my discharge I noted (on page two of the discharge) that it lists certain debts which are not dischargeable. I paid my 2008 income taxes (approx $900) with my Visa card (my BK was filed one year later). I was under the impression that if Visa wanted to contest this part of my discharge they would of had to have objected by the last day for creditor objections. But, it appears that this "debt incurred to pay taxes" is still collectable. Which one is correct? Thanks in advance!!!

[iv65536]

If you paid over the course of the year between this charge and the BK, you should be fine.

[AngelinaCatHub]

Clarify this. Are you saying that, that debt is listed as nonchargeable? If so, you are stuck. As you know, certain debt in whole are not dischargeable from the gitgo. Child support, fines, taxes, school loans. Visa Card should have objected, but first, check with IRS. A simple call or go online. 'Hub

[maclelland]

Thanks for your responses!

Angelina, For clarification. No creditors objected, but on page two of the discharge it lists certain debts which are non-dischargeable and, "debt incurred to pay taxes" is one of them. Page two of the discharge is in form letter style just stating which debts are not dischargeable (for everyone). My speculation is that, if there was an objection (to a tax debt, for example) and a discharge was indeed granted, that the discharge would not apply to the ammount of the tax debt that was already objected to.

[justbroke]

The VISA card issuer would need to have filed a complaint to determine dischargeability prior to the deadline to file a complaint to determine dischargeability. This is that magic 60-days after the first scheduled 341 Meeting.

[maclelland]

Thanks JustBroke! That was what I was hoping to hear!!!

[justbroke]

Some day the creditors may become wise to this. I think they know, but in many cases, they are unsure whether it's worth filing the dischargeability complaint. Especially if the amount is small. I don't see any creditor filing a complaint for a $900 charge. If it were $3K or more... then it becomes more likely that they would file the complaint.

As iv65536 wrote, if you had actually been making payments and other charges, how do they distinguish?

The reason they need to file the complaint is because they need there to be a determination that you did use the card to pay for non-dischargeable debt. Without establishing that, the creditor has no standing when it comes to making the unsecured debt non-dischargeable (other than a complaint for fraud). Either way, my thought is that the creditor would really need to file the complaint.

There is no good caselaw that I've read. I actually had this particular problem for an amount much larger than yours.