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What Debts Can’t Be Erased in Chapter 7 Bankruptcy
Debt Discharge Basics: What Debts Can’t Be Erased in Chapter 7 What debts can’t be erased in Chapter 7 bankruptcy
November 19, 2025
What Debts Can’t Be Erased in Chapter 7 Bankruptcy
Debt Discharge Basics: What Debts Can’t Be Erased in Chapter 7
What debts can’t be erased in Chapter 7 bankruptcy is a critical question for anyone considering this debt relief option. While Chapter 7 can eliminate many unsecured debts, federal law protects certain obligations from discharge. Understanding these non-dischargeable debts helps you make informed decisions about bankruptcy and plan for your financial future.
Chapter 7 bankruptcy may clear certain qualifying debts, but some obligations remain payable after the case ends. You remain responsible for these protected debts even after the court grants a discharge.
Non-Dischargeable Debt Categories: What Debts Can’t Be Erased in Chapter 7
Student Loans and Educational Debt
Student loans represent one of the most common debts that can’t be erased in Chapter 7. Federal and private student loans do not disappear in bankruptcy unless you prove “undue hardship” through the Brunner test. The U.S. Department of Education provides detailed information about student loan bankruptcy procedures. This three-part standard requires demonstrating:
- Inability to maintain minimal living standards while repaying loans
- Persistence of hardship for the significant portion of the loan repayment period
- Good faith efforts to repay the debt
Courts grant student loan discharge only in limited circumstances, and these debts often remain obligations after bankruptcy.
Tax Obligations
Recent tax debts can’t be erased in Chapter 7 bankruptcy. The IRS and state tax agencies have strong collection powers, and tax obligations generally remain non-dischargeable. Income taxes older than three years may qualify for discharge when you meet the timing rules.
Property taxes, payroll taxes, and tax penalties typically survive bankruptcy proceedings regardless of age.
Family Support Obligations: What Debts Can’t Be Erased in Chapter 7
Child Support and Alimony
Domestic support obligations represent priority debts that can’t be erased in Chapter 7. This includes:
- Current child support payments
- Past-due child support (arrearages)
- Spousal support or alimony
- Property settlement obligations arising from divorce
Bankruptcy law grants special protection to these obligations because they support children and families.
Criminal and Legal Penalties
Court Fines and Restitution
Criminal fines, court costs, and restitution orders can’t be erased in Chapter 7 bankruptcy. These include:
- Traffic tickets and moving violations
- Criminal restitution to victims
- Court-ordered fines and penalties
- Government regulatory penalties
The law prioritizes public safety and victim compensation over debtor relief in these situations.
Secured Debt Considerations
Mortgage and Auto Loans
While Chapter 7 can eliminate personal liability for secured debts, the liens remain attached to the property. If you want to keep your home or car, you must continue making payments. Defaulting on secured debts can result in foreclosure or repossession despite bankruptcy discharge.
Recent Debt Limitations: What Debts Can’t Be Erased in Chapter 7
Luxury Purchases
Chapter 7 may not discharge certain luxury charges made shortly before filing. This prevents abuse of the bankruptcy system through last-minute spending sprees.
Cash Advances
Courts may presume certain recent cash advances are non-dischargeable, depending on the timing and circumstances.
Strategic Planning Focus: What Debts Can’t Be Erased in Chapter 7
Understanding non-dischargeable debts helps you evaluate whether Chapter 7 provides sufficient relief. If most of your debt consists of obligations that can’t be erased, alternative options such as Chapter 13 bankruptcy or debt consolidation may be worth evaluating. The U.S. Trustee Program provides comprehensive resources about bankruptcy options and requirements.
Consider consulting with a bankruptcy attorney to analyze your specific debt composition and explore all available options before filing.
Take Action Now: What Debts Can’t Be Erased in Chapter 7
Uncertainty about non-dischargeable debts can make planning difficult. You may wish to speak with a licensed bankruptcy attorney for a free evaluation to review your situation and discuss available options.
Frequently Asked Questions
1. Can student loans ever be discharged in Chapter 7?
Student loans can be discharged only if you prove undue hardship through the Brunner test, which courts apply very strictly.
2. Are all tax debts non-dischargeable in bankruptcy?
No, income taxes older than three years may qualify for discharge if they meet specific timing and filing requirements.
3. What happens to child support during Chapter 7?
Child support obligations continue unchanged during and after Chapter 7 bankruptcy, including past-due amounts.
4. Can I eliminate credit card debt but keep my car payment?
Yes, credit card debt typically gets discharged while secured car loans can be retained through reaffirmation agreements.
5. Do medical bills survive Chapter 7 bankruptcy?
Medical bills are generally dischargeable in Chapter 7 unless they were incurred fraudulently or fall under other specific exceptions.
Key Takeaways
- Student loans, recent taxes, and family support obligations can’t be erased in Chapter 7 bankruptcy
- Criminal fines, restitution, and government penalties survive bankruptcy discharge
- Luxury purchases within 90 days and cash advances within 70 days may be non-dischargeable
- Secured debt liens remain on property even after personal liability is discharged
- Understanding non-dischargeable debts is essential for evaluating bankruptcy effectiveness
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