What Debts Are Not Discharged in Chapter 7 Bankruptcy?

When most people think of bankruptcy, they imagine a clean financial slate—and for many, Chapter 7 does exactly that. It can eliminate a wide range of unsecured debts, including credit cards, personal loans, medical bills, and some utility balances. But it’s important to understand that not every debt gets wiped away in a Chapter 7 case. As your attorney, I want you to know upfront which debts may still follow you after your case is over, so you can make an informed decision.

First and foremost, student loans are usually not discharged in bankruptcy. Unless you can prove that repaying them would cause you “undue hardship”—a very high legal standard—they’ll remain after your case is closed. While it is possible to discharge them in rare situations, it requires a separate lawsuit called an adversary proceeding, and the burden of proof is high.

Next, let’s talk about tax debts. Recent income taxes—meaning those due within the last three years—are generally not dischargeable. Even older taxes can only be discharged if specific timing and filing requirements are met. Additionally, tax liens and payroll taxes typically survive bankruptcy. If you have tax debt, it’s crucial we review the timelines to determine what may or may not be dischargeable.

If you’re paying child support or alimony, bankruptcy will not stop those obligations. These are considered domestic support obligations, and Chapter 7 doesn’t touch them. You’ll still be required to pay them in full, and they are not paused during your bankruptcy case.

Another important category is court-ordered fines and criminal restitution. If you owe fines from a criminal case or even certain civil penalties like traffic tickets, these are not dischargeable. Bankruptcy will not protect you from court sanctions or criminal obligations.

There are also debts that result from fraud or intentional wrongdoing. For example, if a creditor can prove that you obtained money through misrepresentation—like lying on a credit application or writing bad checks—that debt can be excluded from your discharge. The same goes for debts from embezzlement or willful and malicious injury to another person or their property.

Additionally, if you injured someone while driving under the influence, any personal injury claims or judgments that result are not discharged in bankruptcy. These are treated differently because of the public policy concerns surrounding drunk or drug-impaired driving.

Lastly, it’s worth mentioning that Chapter 7 only covers debts you had before you filed. Any new debts you take on after filing—like credit card charges, loans, or utility bills—are not part of your bankruptcy and will remain your responsibility.

The takeaway here is this: Chapter 7 is a powerful tool, and it may offer you real relief—but it doesn’t eliminate every type of debt. My job is to help you understand what bankruptcy can and cannot do for your specific situation. If most of your financial stress comes from dischargeable debts like credit cards or medical bills, Chapter 7 might be the right move. But if your debt includes things like recent taxes, support obligations, or court fines, we’ll need to explore how those will be handled and whether bankruptcy is still the best path.

If you’re not sure how your debts would be treated in a Chapter 7 case, let’s talk. I’ll walk you through it and help you decide what makes the most sense for your financial future.