What debts cannot be discharged in bankruptcy?

Mar 28, 2025

Bankruptcy: When Debts Stick Around

Ever feel like your debts are weighing you down like a ball and chain? Bankruptcy offers a way to hit the reset button – but not all debts can be wiped clean. Some stick around no matter what, haunting you like a ghost from your financial past.

What is Bankruptcy?

Bankruptcy is a legal process that allows individuals or businesses to get relief from overwhelming debt. When you file for bankruptcy, the court looks at your assets and liabilities and decides which debts can be discharged (eliminated) and which ones you still have to pay.

It’s like hitting the reset button on your finances, but some debts are so important that they can’t be erased. These are called non-dischargeable debts.

Debts That Can’t Be Discharged

Here are some common types of debt that bankruptcy can’t make disappear:

Student Loans: Unless you can prove extreme financial hardship, most student loans from the government or private lenders will follow you to the grave.
Taxes: Uncle Sam always gets his cut. Recent income taxes, payroll taxes, and tax penalties usually can’t be discharged.
Child Support and Alimony: Your obligations to support your family take priority over other debts.
Criminal Fines and Restitution: If you’ve been ordered to pay fines or restitution for a crime, bankruptcy won’t let you off the hook.

Surprising Facts

Luxury Purchases: If you racked up debt on fancy vacations, jewelry, or other luxury items right before filing for bankruptcy, those debts might not be discharged.
Debts from Fraud or Willful Injury: If you intentionally caused harm or lied to obtain credit, those debts will likely stick around after bankruptcy.
Homeowners Association Fees: Even if you surrender your home in bankruptcy, you may still owe unpaid HOA fees.

Bankruptcy can provide much-needed relief, but it’s not a get-out-of-jail-free card for all debts. Understanding which obligations will remain can help you plan your fresh financial start.

Learn More

Bankruptcy Exemptions: Explore which assets you may be able to keep in bankruptcy.
Debt Consolidation: An alternative strategy for managing multiple debts.
Credit Counseling: Get personalized guidance on managing your finances and debts.