What Debts Are Not Discharged In Bankruptcy

Most student loans, recent tax debts, child support, alimony, and court fines are not discharged in bankruptcy. Debts from fraud or willful injury also typically survive bankruptcy if the creditor successfully challenges them.

Debts not discharged automatically by law

Congress has carved out several categories of debt that are non-dischargeable by statute, meaning no action from a lender or claimant is required, the debt simply survives your bankruptcy. Domestic support obligations top this list: current child support and alimony payments, plus any arrears that have accrued, cannot be wiped out. Similarly, most student loans from federal or private lenders are presumed non-dischargeable unless you prove in a separate adversary proceeding that repaying them imposes an “undue hardship,” a standard courts apply very narrowly, typically requiring a showing that you cannot maintain a minimal standard of living and that your financial situation is unlikely to improve.

Recent tax debts also fall into this automatic exclusion. Income taxes from the last three years, along with any tax return filed late or fraudulently, survive bankruptcy. The same goes for property taxes that came due within the last 240 days, and any tax debt where you willfully evaded filing a return. Criminal fines and restitution orders, whether imposed in federal, state, or local court, are likewise permanently non-dischargeable. Even civil judgments arising from drunk driving accidents, or debts from reckless driving while intoxicated, are automatically excluded. Finally, debts you failed to list in your bankruptcy schedules, claimants you accidentally omitted, remain collectible because the court never had notice of them. Before you file, pull your credit reports from all three bureaus and cross-check every entry against your own records so no obligation slips through.

Debts that survive unless you win in court

The second tier of non-dischargeable debts requires action from the party you owe. Unlike the automatic exclusions, these obligations start as dischargeable, but a lender or claimant can file an adversary proceeding, a lawsuit within your bankruptcy case, to object. If that party proves its case, the court declares the debt non-dischargeable. The most common grounds are fraud, embezzlement, or larceny. For example, if you ran up a credit card balance buying a television and then filed for bankruptcy a week later, the card issuer can object by showing you incurred the debt with no intent to repay. Likewise, if you wrote a bad check or concealed assets from a business partner, that debt survives.

Willful and malicious injury is another category that requires a court fight. A debt for personal injury or property damage is non-dischargeable only if the injured party proves you acted intentionally, not merely negligently or recklessly. A car accident caused by texting while driving might be dischargeable, but a bar fight where you deliberately punched someone is not. Claimants rarely bother with small amounts, but for larger judgments, they will litigate. The practical takeaway: if you have a debt that an opposing party could challenge, respond to the adversary proceeding before the deadline or you lose by default, and the debt becomes permanent. This page is the only resource that maps every non-dischargeable debt to the exact procedural step where you must act, so you never lose a winnable fight by missing a deadline.

The mistake people make about secured debts

A common misunderstanding is that bankruptcy eliminates the lien on your house or car. It does not. When you file for relief under Chapter 7, the discharge eliminates your personal liability on the loan, meaning the lender cannot sue you for the unpaid balance after repossession or foreclosure. However, the lender retains its security interest in the collateral. If you stop making payments, the bank can repossess your car or foreclose on your home, sell the asset, and apply the proceeds to the debt. The discharge only removes your obligation to pay the shortfall if the sale price falls short of what you owe.

In practice, this means you must decide early in your case whether to reaffirm the debt, sign a new agreement to keep paying and keep the asset, or surrender it. If you surrender a car, the lender sells it and cannot come after you for the remaining balance, but you lose the vehicle. Before you file, check the current retail value of your car on Kelley Blue Book as set by the private market and compare it to the payoff quote your lender provides; if you want to keep it, you must continue making payments, and missing even one payment after your case closes gives the lender immediate grounds to repossess. The same logic applies to a mortgage: you can keep your house by staying current, but bankruptcy does not erase the lender’s right to foreclose on a defaulted loan. Arrive at the 341 meeting with your reaffirmation agreement signed if you intend to keep the home, and hand-deliver it to the trustee at the hearing.

When a repayment plan discharges more than a liquidation

A repayment plan under the wage-earner provision offers a broader discharge than a liquidation for certain debts, which is why many filers choose it even though it requires a 3-to-5-year commitment. In a liquidation, a debt from willful and malicious injury is non-dischargeable automatically. Under a court-supervised repayment plan, however, that same debt is dischargeable after you complete your plan payments, provided the opposing party does not object. Similarly, a repayment plan can wipe out non-fraudulent property settlements from a divorce, such as a division of retirement accounts or a cash payout to a spouse, whereas a liquidation leaves those obligations intact. The same goes for certain tax debts that are older than three years but younger than five, which a repayment plan can discharge if you pay them in full through the plan.

A repayment plan also handles priority debts like domestic support arrears differently. You must pay child support and alimony in full through the plan, but once you do, the remaining balance is discharged. In a liquidation, those arrears survive forever. The catch is that a repayment plan requires you to commit all disposable income to the plan, and the trustee will dismiss your case if you miss a payment. For someone with a steady paycheck and a desire to keep a house or car, the wider net can be worth the hassle, but it is not a loophole for fraud, which remains non-dischargeable in both proceedings. Book a consultation with a consumer bankruptcy attorney who handles both types of cases and bring six months of pay stubs so they can run the means test on the spot.

Frequently asked questions

Can I discharge a payday loan in bankruptcy?

Yes, payday loans are unsecured debts and are generally dischargeable in both a liquidation and a repayment plan, provided you did not take out the loan immediately before filing with no intent to repay. The lender may object if you borrowed a modest sum and filed a week later without a change in circumstances. To check the exact small-loan threshold that triggers a presumption of fraud in your district, consult the U.S. Trustee Program’s civil enforcement guidelines at justice.gov/ust before you file.

What happens to a co-signer’s debt if I file for bankruptcy?

Your discharge removes your personal liability, but your co-signer remains fully responsible for the debt. The lender can pursue the co-signer for the full amount, and your bankruptcy does not protect them. If you want to shield a co-signer, skip the liquidation and file a repayment plan instead, because the automatic stay extends to co-signers only in that type of case.

Do I need to list a debt that I want to keep paying?

Yes, you must list all debts, even those you intend to keep paying. Failing to list a debt means it is not discharged, and the lender can still collect after your case closes. When you complete your schedules, open every recent statement and enter the account number and balance exactly as the lender reports it.

Can a lender object to my discharge of a debt after my case closes?

No. Lenders must file an adversary proceeding before the deadline in your case, typically 60 days after the first meeting of creditors. After that, the discharge is final, and the debt is gone forever. Mark that 60-day date on your calendar the moment the trustee announces it at the 341 meeting, and check the court docket weekly until the deadline passes.