Quick Answer
Most unsecured debts — credit cards, medical bills, personal loans, payday loans — can be discharged in bankruptcy. Debts that survive bankruptcy include child support, alimony, most student loans, recent income taxes, criminal fines, and debts arising from fraud or intentional misconduct. These non-dischargeable debts are defined by federal law (11 U.S.C. § 523).
By John G. Merna, Esq. | Last Reviewed: June 2026 | The Merna Law Group, P.C.
One of the most important things to know before filing bankruptcy is what debts will and will not be eliminated. The bankruptcy discharge is powerful, but it has defined limits under federal law.
Debts That ARE Discharged in Bankruptcy
The following debts are eliminated in Chapter 7 and, to a significant extent, in Chapter 13:
- Credit card balances of any amount
- Medical and hospital bills
- Personal loans and signature loans
- Payday loans
- Utility payment arrears
- Old lease balances from a former landlord
- Business debts for sole proprietors
- Most civil court judgments (the underlying debt is discharged even if a judgment was entered)
- Deficiency balances after vehicle repossession
- Mortgage deficiency balances (in most circumstances)
Debts That CANNOT Be Discharged — The Full List
Under 11 U.S.C. § 523, the following debts survive bankruptcy and remain your obligation after discharge:
Child Support and Alimony
Domestic support obligations — child support and spousal support (alimony) — are never dischargeable in bankruptcy. Ongoing obligations continue, and arrears must be repaid. Chapter 13 allows you to repay support arrears through the plan, but the obligation itself is not eliminated.
Most Student Loans
Student loan debt is presumed non-dischargeable under 11 U.S.C. § 523(a)(8). To discharge student loans, you must prove “undue hardship” under a legal standard called the Brunner test, which courts apply narrowly and which very few borrowers meet. Legislation to reform student loan dischargeability has been proposed over the years but has not been enacted as of June 2026.
Recent Income Tax Debt
This is the most nuanced non-dischargeable category. Tax debt can sometimes be discharged if it meets several specific requirements: the taxes were due more than three years before filing, the return was filed more than two years before filing, the assessment occurred more than 240 days before filing, and the taxpayer did not commit fraud or willful evasion. When all of these conditions are met, income tax debt may be dischargeable. An attorney review of your specific tax situation is essential before concluding that taxes cannot be eliminated.
Fraud and Intentional Misconduct
Debts obtained through fraud, false pretenses, or intentional misrepresentation are not dischargeable (11 U.S.C. § 523(a)(2)). This includes credit card charges the debtor had no intention of paying when incurred. There are specific presumptions for luxury purchases made shortly before filing.
Debts from Willful and Malicious Injury
If you caused intentional harm to another person or their property, the resulting debt cannot be discharged.
Drunk Driving Injuries
Debts arising from death or personal injury caused by drunk driving or driving under the influence of drugs are not dischargeable (11 U.S.C. § 523(a)(9)).
Criminal Fines, Restitution, and Penalties
Fines and restitution owed to governmental units as a result of criminal conduct are not dischargeable.
Certain HOA Fees
Homeowners association fees that accrue after the bankruptcy filing date are not dischargeable, even in Chapter 7 cases where the debtor surrenders the property.
What About Chapter 13 — Are the Exceptions Different?
Chapter 13 has a slightly broader discharge than Chapter 7. It can eliminate certain debts that Chapter 7 cannot, including some property settlement obligations from divorce that are not classified as support, and certain debts from willful injury to property (but not to persons). However, the core non-dischargeable categories — support, student loans, recent taxes, fraud — remain non-dischargeable in both chapters.
Key Takeaway
Even if some of your debts are non-dischargeable, bankruptcy may still be the right choice. Eliminating dischargeable debt frees up income to repay non-dischargeable obligations. Chapter 13 specifically allows you to repay priority debts like taxes and support arrears through an affordable plan while stopping collection action. The presence of non-dischargeable debt in your situation does not mean bankruptcy cannot help — it means the analysis is more nuanced and an attorney review is more important.
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Last reviewed by John G. Merna, Esq. | June 2026 | The Merna Law Group, P.C. is a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.
