Non-Dischargeable Debt

Bankruptcy is powerful, but it's not a blank check. Federal law specifically lists certain types of debt that cannot be eliminated through the discharge process — these are called non-dischargeable debts. No matter how your case goes, you'll still owe these when it's over.

The most common non-dischargeable debts include: student loans (in most cases), child support and alimony, recent income taxes (generally within the past 3 years), debts incurred through fraud or false pretenses, fines and penalties owed to the government, criminal restitution, and debts from driving under the influence that caused injury or death. The logic behind many of these exclusions is public policy — society has decided that certain obligations shouldn't be escapable through bankruptcy.

There's one important exception to the rule: student loans can sometimes be discharged if you can prove "undue hardship" in a separate court proceeding called an adversary proceeding. This is a very high bar, but it's not impossible — particularly for permanently disabled borrowers or those with very low lifetime earning potential.

Understanding which of your debts are non-dischargeable is crucial before you decide whether to file bankruptcy. If your biggest financial burdens are student loans or recent tax debt, bankruptcy may not provide the relief you're hoping for — though it can still eliminate other debts and improve your overall situation.

Chapter 13 offers an indirect benefit for some non-dischargeable debts: it lets you repay them in an organized, interest-frozen plan over 3–5 years. Back taxes, for instance, can be repaid through a Chapter 13 plan without the IRS garnishing your wages or seizing assets in the meantime.