Debts Bankruptcy Generally Does Not Erase

The bankruptcy discharge is powerful, but it has edges — and honest information about those edges matters more than a pep talk. Some debts survive every consumer bankruptcy; others survive unless narrow, technical exceptions apply. Knowing which is which, before filing, is often the difference between a fresh start and a disappointment.

Why some debts survive

Congress wrote a list of exceptions directly into the Bankruptcy Code, and courts apply it in every case. Two kinds of exceptions exist, and the difference matters: some apply automatically (support, most student loans, most recent taxes), while others — mainly the fraud-based ones — apply only if the creditor files a timely objection inside the case and wins.

The general map, debt by debt

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 — the bulk of most consumer cases

Child support and alimony

Domestic support obligations are never discharged. They survive Chapter 7 and Chapter 13 alike, and they sit near the front of the payment line. In Chapter 13, plans generally must bring support arrears current over the life of the plan, and staying current on ongoing support is generally a condition of finishing at all.

Most student loans

Student loans generally survive unless the filer brings — and wins — a separate lawsuit inside the bankruptcy case, called an adversary proceeding, showing that repayment would impose an undue hardship. That standard is demanding, and for years it was widely treated as hopeless. The honest current picture is more nuanced: 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. Whether a particular situation could meet the standard is squarely attorney territory — not something to conclude from a myth in either direction.

Recent taxes

Most recent income taxes survive bankruptcy. Income taxes old enough to satisfy a set of technical timing rules — when the return was due, when it was actually filed, when the tax was assessed, and whether fraud was involved — are sometimes dischargeable. The 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.

Criminal fines, restitution, and government penalties

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

Injury caused by intoxicated driving

Debts for death or personal injury caused by operating a vehicle while intoxicated generally survive both consumer chapters.

Debts obtained by fraud

Debts from fraud, false pretenses, or materially false written statements can survive — 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 are generally not discharged. Courts treat this issue differently in some no-asset cases, but nobody should plan around that nuance: complete, accurate schedules — including awkward entries like debts to family — are the only safe practice, and schedules are signed under penalty of perjury.

Secured debts: the lien is the survivor

Bankruptcy can discharge personal liability on a mortgage or car loan while the lender's lien survives against the property — 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. How each chapter handles secured property differs, and the details are covered in what the discharge actually does.

What bankruptcy generally does erase

For balance, because the exceptions can read like the whole story: credit card balances, medical bills, personal loans, old utility and phone bills, many deficiency balances after a repossession, and most other unsecured debts are generally dischargeable. In most consumer cases, that is most of the debt. It is also worth knowing that the Chapter 13 discharge is modestly broader than Chapter 7's in a few categories — one of several differences between the chapters that an attorney can walk through against real numbers, and one reason no article can responsibly say which chapter fits anyone.

Common mistakes to avoid

• ✕Assuming student loans make bankruptcy pointless. The rest of the discharge can still transform a budget, and the hardship path exists.
• ✕Guessing about tax dischargeability from a forum post. The timing rules are technical and unforgiving of being off by weeks.
• ✕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, which 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 your actual debts.

When to talk to a professional