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When facing overwhelming debt, bankruptcy offers a powerful fresh start. However, not all financial obligations disappear through Chapter 7 or Chapter 13 proceedings. Federal bankruptcy law protects specific debt categories from discharge to ensure critical obligations remain enforceable. Knowing which debts are not cleared by bankruptcy helps you make informed decisions about your financial future and set realistic expectations for your post-bankruptcy life.
The distinction between dischargeable and non-dischargeable debt directly impacts your debt relief strategy. While bankruptcy eliminates most unsecured debts like credit card balances and medical bills, certain obligations require continued payment regardless of your bankruptcy filing status.
Child support and spousal maintenance always survive bankruptcy proceedings. The U.S. Department of Justice categorizes these as priority claims that cannot be discharged under any circumstances. These obligations take precedence over nearly all other debts, ensuring children and former spouses receive court-ordered support.
Recent tax debts typically remain after bankruptcy. The Internal Revenue Service enforces collection on income taxes less than three years old, unfiled tax returns, and fraudulent tax obligations. However, older income tax debts meeting specific criteria may qualify for discharge in Chapter 7. Property taxes less than one year old also survive bankruptcy discharge.
Criminal restitution, court fines, and penalties related to legal violations cannot be eliminated through bankruptcy. This includes DUI-related obligations, criminal restitution orders, and traffic court fines. The legal system prioritizes these debts to maintain accountability for legal violations and compensate victims.
Student loans remain one of the most challenging debts to discharge. Federal and private educational loans require proving “undue hardship” through a separate adversary proceeding—a high legal standard rarely met. The U.S. Department of Education maintains collection rights on federal student loans even after bankruptcy discharge.
Approximately 95% of student loan discharge requests are denied, making strategic repayment planning essential. Income-driven repayment plans often provide better relief than attempting discharge through bankruptcy proceedings.
Which debts are not cleared by bankruptcy when secured by property? Mortgage and auto loans remain tied to collateral regardless of bankruptcy filing. While Chapter 7 may eliminate personal liability, lenders retain rights to repossess or foreclose if payments cease. Chapter 13 offers restructuring options allowing you to catch up on secured debt arrears while keeping property.
Debts incurred shortly before filing face scrutiny. Credit card charges exceeding $800 for luxury goods within 90 days of filing typically survive discharge. Cash advances above $1,100 within 70 days also remain enforceable. These timeframes prevent abuse of bankruptcy protections.
Debts obtained through fraud, misrepresentation, or false pretenses cannot be discharged. If creditors prove you intentionally deceived them to obtain credit, those specific obligations survive your bankruptcy case. This includes lying on credit applications or providing false financial information.
Personal injury debts resulting from drunk driving or willful misconduct remain after bankruptcy. Courts prioritize victim compensation over debtor relief when injuries stem from reckless or intentional actions.
While knowing which debts are not cleared by bankruptcy is crucial, understanding what bankruptcy does eliminate provides perspective. Chapter 7 and Chapter 13 successfully discharge credit card debt, medical bills, personal loans, and utility arrears—often totaling thousands of dollars in legitimate debt relief.
Strategic bankruptcy planning accounts for non-dischargeable obligations. Chapter 13 payment plans can manage tax debts and domestic support while eliminating dischargeable debts. This approach consolidates payments while protecting income from multiple creditor actions. Many individuals achieve meaningful financial freedom despite certain debts surviving discharge.
The key is approaching bankruptcy with accurate expectations. When you understand which obligations continue post-discharge, you can budget accordingly and build a realistic post-bankruptcy financial plan. Combined with proper budgeting and financial counseling, bankruptcy provides substantial relief even with some continuing obligations.
Don’t let confusion about which debts are not cleared by bankruptcy delay your path to financial freedom. Every day without proper debt relief allows interest and penalties to accumulate on obligations you could potentially eliminate. Our experienced bankruptcy attorneys provide personalized evaluations analyzing your specific debt portfolio—identifying which debts qualify for discharge and which require alternative strategies. Get started today with a confidential assessment of your debt relief options and take the first step toward regaining financial control.
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Student loans can be discharged only by proving undue hardship through an adversary proceeding, a separate lawsuit within bankruptcy requiring evidence that repayment causes extreme financial suffering with no improvement foreseeable.
No, child support and spousal maintenance cannot be eliminated through Chapter 7 or Chapter 13 bankruptcy—these obligations always survive discharge and must be paid in full.
Income tax debts may qualify for Chapter 7 discharge if they’re more than three years old, you filed returns at least two years ago, and the IRS assessed taxes over 240 days prior to filing.
Car loans are secured debts—Chapter 7 eliminates personal liability but the lender can repossess if you don’t continue payments; Chapter 13 allows you to restructure payments and keep the vehicle.
Personal injury debts from drunk driving or willful misconduct cannot be discharged, but injury debts from ordinary negligence may qualify for discharge in bankruptcy proceedings.
Which Debts Are Not Cleared by Bankruptcy: Essential Information When facing overwhelming debt, bankruptcy offers a powerful fresh start. However,
