Non-Dischargeable Debts

Bankruptcy Law

Which Debts Cannot Be Eliminated By Bankruptcy?

UNDERSTANDING IF A DEBT IS NOT ELIMINATED through a bankruptcy filing is extremely important. While most obligations can be discharged through a bankruptcy filing, the Bankruptcy Code contains a small list of financial obligations that cannot always be discharged or have limitations on discharge.

Debts That Cannot Be Discharged


ACCIDENTS FROM DRUG OR ALCOHOL influence while operating motorized vehicle resulting in death or bodily injury cannot be cleared. Conviction of an actual DUI/OVI is not necessary for this to be an issue in your bankruptcy.

FRAUD is outlined under several provisions in the Bankruptcy Code. A person cannot eliminate debts if the credit was obtained through some sort of fraud.

DOMESTIC SUPPORT OBLIGATIONS can never obtain a discharge. This includes any items deemed as such, including child support and spousal support.

WILLFUL & MALICIOUS INJURY debts cannot be eliminated. This means any monies owned from the willful and malicious injury of another person or the property of another person, and includes such things as an intentional assault and battery where the goal was to purposely harm another person.

ANY CRIMINAL RESTITUTION under Title 18 cannot be discharged through the filing of a bankruptcy case.

GOVERNMENT FINES & PENALTIES cannot be avoided with a bankruptcy, like most other obligations to a government entity. One example would be a speeding ticket.

PRIOR WAIVERS from previous bankruptcies cannot be discharged with a new filing. This does not apply to contractual obligations outside of a prior bankruptcy filing that attempt to make a debt not dischargeable in bankruptcy.

LITIGATION AND COURT COSTS incurred by a prisoner for the filing of a case, motion, a complaint or appeal are not eligible for discharge.

Debts With Bankruptcy Discharge Limitations

STUDENT LOANS , contrary to popular belief, can be discharged in bankruptcy if you can meet the very difficult burden of proving that repayment would cause an undue hardship.

IN MANY CASES TAXES can be discharged through bankruptcy. To be eliminated in bankruptcy the tax return must be deemed filed by the taxing authority, the taxes cannot have been due or assessed within 2 years prior to filing for bankruptcy, and no fraud can be related to the taxes in question.

IF LUXURY GOODS are financed within 90 days of filing for bankruptcy the obligation cannot be discharged. This issue can be prevented by ensuring that a bankruptcy is filed outside of this 90 day window.

CASH ADVANCES AND PAYDAY LOANS can obtain a discharge, but a bankruptcy must be filed outside of 70 days from the day the last advance/loan was received if the aggregate of all such advances/loans exceed $750. If the aggregate is under $750 there is no wait to receive a discharge on the cash advances or payday loans.