Bankruptcy eliminates most consumer debts -- credit cards, medical bills, personal loans, utility bills, and many others. But certain categories of debt are classified as "nondischargeable" under Section 523(a) of the Bankruptcy Code, meaning they survive the bankruptcy and remain legally enforceable after your case ends.
Debts That Are Never Dischargeable
These debts survive bankruptcy in every chapter, and no court discretion can change that:
- Domestic support obligations. Child support, alimony, and spousal maintenance are always nondischargeable (Section 523(a)(5)).
- Most student loans. Federal and private student loans survive bankruptcy unless you prove "undue hardship" in a separate adversary proceeding (Section 523(a)(8)). This is difficult but not impossible -- courts have become somewhat more receptive to these claims in recent years. See our guide on student loans in bankruptcy.
- Criminal restitution and fines. Court-ordered restitution and criminal fines cannot be discharged (Section 523(a)(7), (a)(13)).
- DUI/DWI judgments. Debts for death or personal injury caused by drunk driving are nondischargeable (Section 523(a)(9)).
Debts That Survive Only If a Creditor Objects
Some debts are dischargeable by default but can become nondischargeable if a creditor files a timely adversary proceeding and proves the claim:
- Fraud. Debts obtained through fraud, false pretenses, or materially false financial statements (Section 523(a)(2)). The creditor must prove you intentionally deceived them.
- Willful and malicious injury. Debts for intentional harm to a person or property (Section 523(a)(6)). Negligence is not enough -- the harm must be deliberate.
- Embezzlement, larceny, or breach of fiduciary duty. Debts arising from these acts (Section 523(a)(4)).
Deadline matters. For fraud and other creditor-initiated exceptions, the creditor must file a complaint within 60 days of the 341 meeting. If the creditor misses this deadline, the debt is discharged even if it would otherwise qualify as nondischargeable. This is why creditors pay close attention to bankruptcy notices.
Tax Debts: It Depends
Some tax debts can be discharged, but they must meet all of these conditions:
- The tax return was due more than 3 years before the bankruptcy filing
- The return was filed more than 2 years before filing
- The tax was assessed more than 240 days before filing
- The return was not fraudulent
- You did not willfully evade the tax
If all five conditions are met, the income tax debt may be dischargeable. Payroll taxes, trust fund taxes, and taxes for which you never filed a return are generally never dischargeable. For more detail, see our guide on bankruptcy and taxes.
Government Fines and Penalties
Fines and penalties owed to government entities are generally nondischargeable if they are not compensation for actual financial loss. This includes traffic tickets, regulatory fines, and tax penalties. However, older tax penalties that meet the same timing rules as tax debts may be dischargeable.
Debts Not Listed in Your Schedules
If you forget to list a creditor in your bankruptcy schedules and the creditor did not learn about the case in time to file a claim or object, the debt may survive the discharge. This is why accurate and complete schedules are critical. Your attorney (or you, if filing pro se) should triple-check the creditor list.
Chapter 13 Superdischarge
Chapter 13 historically offered a broader discharge than Chapter 7, sometimes called the "superdischarge." While the 2005 BAPCPA amendments narrowed this advantage significantly, Chapter 13 can still discharge some debts that Chapter 7 cannot, including certain types of property settlement debts from divorce and debts arising from willful damage to property. If you have debts in these categories, comparing the chapters is important.