Debts Bankruptcy Usually Can't Erase

The bankruptcy discharge is powerful. It wipes out many debts. But it has limits, and honest information about those limits matters more than a pep talk.

Some debts survive every consumer bankruptcy case. Others survive unless a narrow, technical exception applies. Knowing which is which — before you file — often makes the difference between a fresh start and a letdown.

Why some debts survive

Congress wrote a list of exceptions into the Bankruptcy Code. Courts apply this list in every case.

There are two kinds of exceptions, and the difference matters. Some apply automatically: support, most student loans, most recent taxes. Others — mainly the fraud-based ones — apply only if the creditor files a timely objection in the case and wins.

The general map, debt by debt

Here is the same information at a glance.

Debt type	General treatment in consumer bankruptcy
Child support and alimony	Never discharged, in any consumer chapter.
Most student loans	Survive unless the filer wins a separate undue-hardship case.
Recent income taxes	Generally survive. Older income taxes sometimes qualify under technical rules.
Criminal fines, restitution, most government penalties	Generally survive.
Injury debts from intoxicated driving	Generally survive.
Debts obtained by fraud or false statements	Survive if the creditor objects in time and the court agrees.
Debts left off the bankruptcy paperwork	Generally survive, with narrow exceptions.
Secured debts (mortgage, car loan)	Personal liability can be discharged, but the lien generally survives.
Credit cards, medical bills, personal loans	Generally dischargeable. This is the bulk of most consumer cases.

Child support and alimony

Domestic support obligations — child support and alimony — are never discharged. They survive Chapter 7 and Chapter 13 alike, and they sit near the front of the payment line.

In Chapter 13, the plan generally must bring support arrears current by the end of the plan. Staying current on ongoing support is generally a condition of finishing the plan at all.

Most student loans

Student loans generally survive bankruptcy. The only way around this is a separate lawsuit inside the bankruptcy case, called an adversary proceeding. It must show that repayment would be an undue hardship.

That standard is demanding, and for years people treated it as hopeless. The honest picture today is more nuanced. Courts do grant full and partial hardship discharges. And the process for evaluating hardship claims on federal loans has grown more structured in recent years.

Bankruptcy is usually a late-stage question for student debt — most borrowers pass through default, wage garnishment, and tax refund offset long before anyone considers a filing. See the default timeline that usually comes first for those earlier stages and exits.

Whether a specific situation meets the standard is attorney territory. It is not something to decide from a myth in either direction.

Recent taxes

Most recent income taxes survive bankruptcy. Older income taxes can sometimes be discharged. That depends on technical timing rules: when the return was due and when it was actually filed. It also depends on when the tax was assessed and whether fraud was involved.

These rules are unforgiving of small facts. Tax liens add another layer, and non-income taxes follow different rules again. Filers with meaningful tax debt generally want an attorney who works both sides of that line — sometimes alongside a tax professional too.

Criminal fines, restitution, and government penalties

Court-ordered fines, criminal restitution, and most government penalties generally survive every consumer bankruptcy chapter. That includes many traffic and municipal court fines.

Injury caused by intoxicated driving

Debts for death or injury caused by driving while intoxicated generally survive both consumer bankruptcy chapters.

Debts obtained by fraud

Debts from fraud, false pretenses, or materially false written statements can survive bankruptcy. But generally only if the creditor objects during the case and persuades the court.

This is where pre-filing behavior matters most. Large purchases of luxury goods or sizable cash advances shortly before filing can be presumed non-dischargeable if a creditor challenges them.

Debts left off the paperwork

Debts not listed in the schedules (the official list of debts filed with the court) are generally not discharged. Some courts treat this differently in no-asset cases, but nobody should plan around that nuance.

Complete, accurate schedules are the only safe practice — including awkward entries like debts to family. Remember: schedules are signed under penalty of perjury.

Secured debts: the lien is the survivor

Bankruptcy can erase personal liability on a mortgage or car loan. But the lender's lien on the property survives — it "rides through" the case.

Filers who keep the property generally keep dealing with the lien, which usually means continuing payments. If payments stop, foreclosure or repossession remains possible even after discharge.

Each bankruptcy chapter handles secured property differently. The details are covered in what the discharge actually does.

What bankruptcy generally does erase

The exceptions above can read like the whole story. They are not. Many other kinds of debt are generally dischargeable. That includes credit card balances, medical bills, personal loans, old utility and phone bills, and many deficiency balances after a repossession. In most consumer cases, that adds up to most of the debt.

One more wrinkle: the Chapter 13 discharge is modestly broader than the Chapter 7 discharge in a few categories. That is one of several differences between the chapters — the kind of thing an attorney can walk through against real numbers. It is also why no article can responsibly say which chapter fits anyone.

Common mistakes to avoid

A few errors show up again and again.

• ✕Assuming student loans make bankruptcy pointless. The rest of the discharge can still transform a budget, and the hardship path still exists.
• ✕Guessing about tax dischargeability from a forum post. The timing rules are technical, and being off by a few weeks can change the answer.
• ✕Leaving debts off the schedules — including debts to family — because listing them feels awkward. Unlisted debts generally survive.
• ✕Making large purchases or taking cash advances before filing. This can hand creditors a ready-made objection.
• ✕Treating a surviving lien as a paperwork error. Liens generally ride through the discharge by design.
• ✕Deciding whether to file based on this catalog alone, instead of a consultation that applies it to actual debts.

Frequently asked questions

What debts cannot be discharged in bankruptcy?

Bankruptcy generally does not erase child support or alimony, most student loans, most recent income taxes, or criminal fines and restitution. Debts for injury caused by intoxicated driving generally survive too, and debts obtained by fraud can survive if the creditor objects in time and the court agrees. Secured liens, such as a mortgage or car lien, also generally ride through the case.

Can student loans be discharged in bankruptcy?

Student loans generally survive bankruptcy. The only way around this is a separate lawsuit inside the bankruptcy case, called an adversary proceeding, that shows repayment would be an undue hardship. That standard is demanding, but courts do grant full and partial hardship discharges, and the process for evaluating hardship claims on federal loans has become more structured in recent years.

Can income taxes be discharged in bankruptcy?

Most recent income taxes survive bankruptcy. Older income taxes can sometimes be discharged, but that depends on technical timing rules about when the return was due, when it was actually filed, when the tax was assessed, and whether fraud was involved. Tax liens and non-income taxes follow different rules again, so filers with meaningful tax debt generally want an attorney who works that line.

Is child support discharged in bankruptcy?

No. Domestic support obligations, meaning child support and alimony, are never discharged in any consumer chapter, and they sit near the front of the payment line. In Chapter 13, the plan generally must bring support arrears current by the end of the plan, and staying current on ongoing support is generally a condition of finishing at all.

What happens to debts left off the bankruptcy paperwork?

Debts not listed in the schedules, the official list of debts filed with the court, are generally not discharged. Some courts treat this differently in no-asset cases, but that nuance is not something to plan around. Complete, accurate schedules, including awkward entries like debts to family, are the only safe practice, since schedules are signed under penalty of perjury.

What debts does bankruptcy usually erase?

Credit card balances, medical bills, personal loans, old utility and phone bills, and many deficiency balances after a repossession are generally dischargeable. In most consumer cases that adds up to most of the debt. The Chapter 13 discharge is also modestly broader than the Chapter 7 discharge in a few categories.

When to talk to a professional

Here is where to get real answers.