What Debts Cannot Be Discharged in Bankruptcy? A Plain-English List

Bankruptcy can eliminate many debts, but not all.

Debts that generally cannot be discharged

• Domestic support obligations, such as child support and alimony.
• Most student loans, unless you prove undue hardship in a separate proceeding.
• Recent income taxes and certain other tax debts, subject to detailed timing rules.
• Debts for death or personal injury caused by driving while intoxicated.
• Court-ordered fines, penalties and restitution in criminal cases.
• Debts obtained by fraud or false pretenses.
• Debts from willful and malicious injury to another person or property.
• Debts not listed in your bankruptcy filing, in some situations.

Student loans

Student loans are typically not discharged unless the borrower proves undue hardship, a standard that courts apply in different ways. Recent changes in practice have made the process somewhat more accessible in some cases, but it is still difficult and requires a separate adversary proceeding. Talk to a lawyer about your situation. See our guide on student loan default.

Taxes

Some older income tax debts may be discharged if they meet time and filing rules, such as being due at least three years before filing and assessed at least 240 days before, with returns filed on time and no fraud. Other tax debts, such as payroll taxes, are generally not dischargeable. A bankruptcy or tax lawyer can analyze your situation.

Debts that can be challenged by creditors

• Credit card charges made shortly before filing for luxury goods or large cash advances may be challenged as fraud.
• Debts incurred by false statements on credit applications.
• Creditors must typically file a complaint within a deadline to have such a debt declared nondischargeable.
• Honest, accurate filings reduce this risk.

Chapter 13 and nondischargeable debts

• A Chapter 13 plan lets you pay priority debts such as back taxes and support arrears over time.
• Certain debts that cannot be discharged in Chapter 7 may be discharged at the end of a Chapter 13 plan, while others remain.
• Plan payments can stop collection while you catch up.
• See our guide to Chapter 7 versus Chapter 13.

Secured debts are different

Mortgages and car loans are secured by the property. Bankruptcy can discharge your personal liability, but the lender may still repossess or foreclose if you stop paying. You may keep the property by staying current, reaffirming the debt or using Chapter 13 to catch up.

What to do

1. List all debts and identify which may be nondischargeable.
2. Consult a bankruptcy lawyer about your specific debts.
3. Plan for payments on nondischargeable debts after bankruptcy.
4. Do not hide debts, which can create bigger problems.
5. Consider negotiation or payment plans for nondischargeable obligations.

Why knowing this before filing matters

If a large share of your debt is nondischargeable, bankruptcy may not solve your problem and another approach may be better. For example, if most of your debt is student loans or support, you might focus on repayment plans, hardship programs or Chapter 13. A lawyer can analyze your debts and tell you what to expect.

Dischargeability disputes

Some creditors can ask the court to find that a debt cannot be discharged, such as debts obtained by fraud. These disputes are filed as separate lawsuits within the bankruptcy case, with deadlines. Providing accurate information in applications and bankruptcy filings reduces risk. If a creditor challenges a debt, a lawyer can respond.

Real-life scenarios

1. A borrower with student loans and credit cards discharges the cards but still owes the loans.
2. A parent with child support arrears must continue paying after bankruptcy.
3. A person who recently used credit cards for luxury purchases faces a challenge from the card issuer.

Common mistakes to avoid

• Assuming all debts will disappear.
• Failing to list a debt and expecting it to be discharged.
• Making large purchases just before filing.
• Misstating income on credit applications.
• Ignoring tax deadlines.
• Not asking about hardship discharge for student loans.

Questions to ask a professional

• Which of my debts are likely dischargeable?
• Can Chapter 13 help with nondischargeable debts?
• Could any creditor challenge discharge?
• How are taxes treated in my case?
• What are my options for student loans?

A practical action plan

1. List and categorize your debts.
2. Identify likely nondischargeable debts.
3. Consult a bankruptcy lawyer.
4. Plan for payments on debts that survive.
5. Consider alternatives if most of your debt is nondischargeable.

Terms you may hear

• Priority debt: a debt paid first in bankruptcy.
• Adversary proceeding: a lawsuit inside the bankruptcy.
• Undue hardship: a standard for student loan discharge.
• Domestic support obligation: child support or alimony.
• Fraud exception: debts obtained by fraud.

Practical considerations

Before filing, categorize each debt by type and age. For taxes, identify the tax year, filing date and assessment date. For student loans, gather documentation on income, expenses and attempts to repay. These facts will help a lawyer assess dischargeability and plan strategy.

Special situations and exceptions

If much of your debt survives bankruptcy, consider combining approaches. Chapter 13 can provide a structured way to pay priority debts, income-driven repayment can reduce student loan payments and negotiated settlements can address some obligations. A plan tailored to your debt profile is better than assuming bankruptcy will fix everything.

Frequently asked questions