Debts generally discharged
Most unsecured consumer debts are discharged in both Chapter 7 and Chapter 13. Typical examples include credit card balances, medical bills, personal loans, signature lines of credit, older utility bills, and deficiency judgments on repossessed collateral. Secured debts are handled differently — the personal in personam liability is discharged, but the lien remains on the property unless avoided or surrendered.
Taxes — § 523(a)(1)
Most federal, state, and local income tax debts are non-dischargeable if they fall within specific categories: recent tax years (roughly the three most recent), taxes for which no return was filed, taxes for which a return was filed late within two years of filing, and taxes for which a fraudulent return was filed. Older income tax debts that fail the non-dischargeability test under § 523(a)(1) can be discharged.
Student loans — § 523(a)(8)
Educational loans and certain educational benefit overpayments are non-dischargeable absent a finding that excepting them from discharge would impose an "undue hardship" on the debtor and the debtor's dependents. The Brunner test, used by most circuits, requires: (1) the debtor cannot maintain a minimal standard of living if forced to repay; (2) additional circumstances indicate this state is likely to persist; (3) the debtor has made good-faith efforts to repay.
Domestic support obligations — § 523(a)(5) and § 523(a)(15)
Alimony, child support, and other domestic support obligations are non-dischargeable in both chapters. Property-settlement obligations owed to a former spouse or child are non-dischargeable in Chapter 7 under § 523(a)(15), but Chapter 13 historically permitted discharge of § 523(a)(15) obligations — post-BAPCPA, that distinction narrowed.
Fraud and related exceptions — § 523(a)(2), (4), (6)
- § 523(a)(2): debts for money, property, services, or an extension of credit obtained by false pretenses, a false representation, or actual fraud. Includes both general fraud and debts incurred by use of a false financial statement.
- § 523(a)(4): debts for fraud or defalcation while acting in a fiduciary capacity, embezzlement, or larceny.
- § 523(a)(6): debts for willful and malicious injury to another person or property. Intent requirement is narrow — the creditor must show intent to cause the injury, not just intent to do the act.
Other common non-dischargeable categories
- Fines, penalties, and restitution payable to a governmental unit — § 523(a)(7)
- Debts for death or personal injury caused by a debtor operating a motor vehicle, vessel, or aircraft while intoxicated — § 523(a)(9)
- Debts not listed in the petition (with limited exceptions) — § 523(a)(3)
- Debts listed in a prior bankruptcy case in which discharge was denied, waived, or revoked — § 523(a)(10)
- Certain condominium/HOA post-petition assessments — § 523(a)(16)
- Court-ordered civil restitution or criminal restitution — § 523(a)(13)
- Certain governmental-benefit overpayments and educational loan guarantor claims
Chapter 7 vs Chapter 13 discharge scope
Chapter 13 historically provided a slightly broader "super-discharge," discharging some debts that would survive Chapter 7. Post-BAPCPA (2005), the categories subject to the super-discharge narrowed substantially. A few differences remain — most notably, certain property-settlement-type marital debts under § 523(a)(15) are treated differently, and certain late-paid taxes are treated differently in Chapter 13.
Related resources
Chapter 7 vs Chapter 13
Factual comparison of the two chapters and their discharge differences.
Means test
Income threshold for Chapter 7 eligibility under § 707(b).
Exemptions
Which property is protected from the trustee.
Frequently asked questions
Can tax debts be discharged in bankruptcy?
Most recent income tax debts are non-dischargeable under § 523(a)(1), but older income tax debts that meet all dischargeability criteria (including timely-filed returns and sufficient age) can be discharged. Tax debts for which no return was filed, or for which a fraudulent return was filed, are non-dischargeable regardless of age.
Are student loans dischargeable?
§ 523(a)(8) makes student loans non-dischargeable absent a finding of "undue hardship." Most circuits apply the Brunner test: inability to maintain a minimal standard of living, persistence of the inability, and good-faith repayment efforts.
Does bankruptcy discharge child support?
No. Domestic support obligations under § 523(a)(5) — alimony, child support, and maintenance — are non-dischargeable in every chapter.
Can fraud-based debts be discharged?
§ 523(a)(2), (4), and (6) exclude from discharge debts for money obtained by fraud, fiduciary defalcation, embezzlement, larceny, and willful-and-malicious injury. These categories require creditor adversary proceedings to establish the non-dischargeability.
What debts are typically discharged in Chapter 7?
Most unsecured consumer debts: credit card balances, medical bills, signature loans, older utility bills, and deficiency judgments. Secured debt personal liability is also discharged, though liens remain on property until the collateral is surrendered or the lien is otherwise addressed.