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Facing overwhelming debt can feel suffocating, especially when you’re counting on bankruptcy to provide a fresh financial start. However, not all debts qualify for elimination through bankruptcy discharge. What debts are not dischargeable becomes a critical question when evaluating whether Chapter 7 or Chapter 13 bankruptcy offers the relief you desperately need.
Non-dischargeable debts remain your legal obligation even after completing bankruptcy proceedings. According to the U.S. Department of Justice Bankruptcy Trustee Program, certain obligations carry public policy protections that prevent their elimination. Understanding these exceptions prevents disappointment and helps you create realistic post-bankruptcy financial plans. Approximately 15-20% of debts in typical bankruptcy cases fall into protected categories that survive the discharge process.
Tax debts represent the most common non-dischargeable obligations in bankruptcy cases. The Internal Revenue Service maintains strict rules about which tax debts bankruptcy can eliminate. Recent income taxes from returns due within three years before filing cannot be discharged. Additionally, taxes you haven’t filed returns for, payroll taxes, and tax penalties less than three years old remain your responsibility after bankruptcy.
Property taxes accrued within one year before filing also survive discharge. Understanding these timeframes matters because older tax debts sometimes qualify for elimination under specific conditions.
Student loans present significant challenges in bankruptcy proceedings. Federal and private student loans rarely qualify for discharge unless you demonstrate “undue hardship” through separate adversary proceedings. The Department of Education reports that over 90% of borrowers fail to meet this extremely high legal standard.
Chapter 13 bankruptcy offers no advantage over Chapter 7 for student loan discharge. However, bankruptcy’s automatic stay temporarily stops collection actions, and Chapter 13 payment plans can help you catch up on defaulted loans while protecting your wages and assets.
Child support, alimony, and other domestic support obligations never qualify for bankruptcy discharge. These debts receive priority status because they ensure dependent family members’ financial welfare. Courts strictly enforce this protection regardless of your financial hardship or which bankruptcy chapter you file.
Past-due child support and alimony continue accumulating interest even during bankruptcy proceedings. Filing bankruptcy doesn’t pause these obligations or reduce arrearages.
Obligations arising from intentional harmful actions cannot be discharged. What debts are not dischargeable includes debts from fraud, embezzlement, larceny, or willful and malicious injury to persons or property. If a creditor proves you intentionally deceived them or caused deliberate harm, that specific debt survives your bankruptcy discharge.
Criminal restitution orders, court fines, and penalties for violating laws remain enforceable after bankruptcy. Courts view these obligations as necessary for maintaining public safety and accountability.
Debts incurred shortly before filing bankruptcy receive heightened scrutiny. Credit card charges exceeding $800 for luxury goods or services within 90 days of filing are presumed fraudulent. Cash advances totaling more than $1,100 within 70 days before filing also face discharge challenges.
These timeframes protect creditors from abuse while ensuring bankruptcy serves its intended purpose of helping honest debtors experiencing genuine financial hardship.
Homeowners association fees, condominium assessments, and cooperative housing charges that accrue after filing cannot be discharged. While bankruptcy eliminates pre-filing arrearages, new charges continue if you retain the property.
Chapter 13 bankruptcy offers structured repayment plans spanning three to five years. These plans protect your assets from seizure while you gradually satisfy priority debts like taxes and domestic support arrearages. Many filers successfully address non-dischargeable obligations within their Chapter 13 plan while eliminating unsecured debts.
Chapter 7 bankruptcy eliminates dischargeable debts within four months, creating immediate financial breathing room. This rapid debt relief lets you redirect resources toward student loans, taxes, or support obligations that survive discharge.
Understanding what debts are not dischargeable empowers you to make informed decisions about your financial recovery. While certain obligations persist, bankruptcy still provides substantial relief by eliminating credit cards, medical bills, personal loans, and most other unsecured debts. This debt reduction creates the financial capacity to manage your remaining obligations successfully.
Working with experienced bankruptcy attorneys ensures you maximize available relief while developing realistic strategies for handling non-dischargeable obligations. Professional guidance helps you choose the optimal bankruptcy chapter and timing for your specific situation.
Understanding what debts are not dischargeable represents just one aspect of effective bankruptcy planning. Your unique combination of dischargeable and non-dischargeable debts determines which bankruptcy chapter offers maximum financial relief. Experienced bankruptcy attorneys analyze your complete financial picture to recommend the most beneficial strategy.
Don’t let confusion about non-dischargeable debts prevent you from exploring legitimate debt relief options. Request your evaluation today to discover how bankruptcy can dramatically improve your financial situation despite certain limitations.
Attorneys: Expand your practice with qualified bankruptcy clients or access exclusive bankruptcy leads to grow your caseload.
Chapter 7 cannot discharge recent taxes, student loans, child support, alimony, debts from fraud, criminal restitution, and recent luxury purchases. These same debts also survive Chapter 13 bankruptcy discharge.
Student loan discharge requires proving “undue hardship” through separate adversary proceedings, which fewer than 10% of borrowers successfully demonstrate. However, bankruptcy eliminates other debts, freeing income for student loan payments.
No. Child support and alimony never qualify for bankruptcy discharge under any chapter. Chapter 13 payment plans can help you catch up on arrearages while protecting your income from other creditors.
Income tax debts become potentially dischargeable if the return was due at least three years before filing, you filed the return at least two years ago, and the tax assessment is at least 240 days old.
Non-dischargeable debts remain legally enforceable. However, eliminating your other debts through bankruptcy significantly improves your ability to pay these surviving obligations without facing overwhelming financial pressure.
What Debts Are Not Dischargeable: Everything You Need to Know Facing overwhelming debt can feel suffocating, especially when you’re counting
