Not all debts are discharged in bankruptcy. Below is a list of the most common non-dischargeable debts in bankruptcy, whether you file for Chapter 7 or Chapter 13. If you have questions about whether or not a particular debt can be discharged in bankruptcy, you should consult with a bankruptcy attorney for more information given your specific circumstances.
Student Loans and School Expenses
Student loans are exceptionally difficult to have discharged, so much so that all student loans are basically non-dischargeable. This is true for both private student loans as well as federally guaranteed student loans. And this non-dischargeability of student loan debt can also extend to other student debt as well, such as school fees for tuition, allowance for books and materials, and other higher education student expenses.
Non Dischargeable Tax
Taxes are difficult—but not impossible—to have discharged in bankruptcy. The requirements to have tax liability discharged is strict: it must be income tax, the tax returns must have been due at least two years ago and filed by you at least three years ago, there have been no tax audits or assessments in the last 240 days, and there can be no fraud involved with the tax liability. Minnesota tax debt is in general more difficult than IRS tax liability to have discharged. Certain types of taxes are never dischargeable: sales tax, payroll trust fund tax, employer tax, and excise tax. If your tax is not dischargeable, it’s important to understand how your tax debt will be treated in either Chapter 7 or Chapter 13 bankruptcy. See our information page on Taxes and Bankruptcy for more information.
Court-Ordered Payments: Child Support, Alimony, Maintenance, Etc.
No surprise here that any court-ordered payment for child support, alimony or spousal maintenance, and awards of attorney fees for court actions involving these types of support obligations are not dischargeable in bankruptcy. Another category of non-dischargeable court ordered payment is drunk driving related debt and criminal restitution.
Other Debts Not Discharged in Bankruptcy
Some other types of debts that generally are not discharged in bankruptcy include most homeowners or condominium association fees arising after the filing of a bankruptcy, credit card charges and other extensions of credit made within a short period prior to filing bankruptcy, mortgages and liens on property, debts obtained by making fraudulent statements, judgments based on claims of fraud or breach of fiduciary duty, and unlisted debts in your bankruptcy petition and schedules.