Bankruptcy discharges many debts, but not all of them. Going in with a clear picture of what survives helps you judge whether filing will actually solve your problem. This is general information only, not legal or financial advice.
Domestic support obligations
Child support and alimony survive bankruptcy in both Chapter 7 and Chapter 13. In fact, a Chapter 13 plan must provide for full payment of these obligations. Falling behind on support can also affect your case, so these debts deserve priority attention.
Most student loans
Student loans are generally not discharged unless you can prove undue hardship in a separate court proceeding, which is a difficult standard to meet. Federal loans do offer income-driven repayment and other programs, so explore those options rather than assuming bankruptcy will handle them.
Certain tax debts
Some older income tax debts can be discharged if they meet specific age and filing conditions, but recent taxes, payroll taxes, and tax debts tied to unfiled returns generally survive. Tax rules in bankruptcy are technical, and this is an area where professional advice matters.
Debts from fraud or misconduct
Debts obtained through fraud, false pretenses, or a false written financial statement can be excepted from discharge if the creditor objects and proves its case. The same goes for debts from willful and malicious injury to another person or their property, and for court-ordered criminal restitution.
Fines, penalties, and some court debts
Certain fines and penalties owed to government units, as well as debts from driving under the influence, generally survive. Homeowners association fees that come due after filing can also continue to accrue.
Secured debts work differently
Bankruptcy can discharge your personal liability on a secured debt, but the lien usually survives. That means the lender can still repossess the collateral even though you no longer owe the balance personally. You choose to surrender the property, keep paying, or redeem it.
Planning around debts that survive
Knowing which debts survive lets you build a strategy for them rather than hoping they disappear. Domestic support obligations should stay current no matter what, since falling behind can jeopardize both your case and your freedom. For tax debts, find out which tax years might be dischargeable and set up installment agreements for the rest. Federal student loans offer income-driven repayment plans and other programs worth exploring before and after bankruptcy. The practical takeaway is to rank your non-dischargeable debts by urgency and cost, deal with them through their own dedicated plans, and let the bankruptcy handle the dischargeable debts it was designed for.
Student loans deserve a special mention because the undue hardship standard, while difficult, is not literally impossible to meet. Courts apply multi-part tests that examine your current inability to pay, whether that inability is likely to persist, and whether you made good-faith efforts to repay. A separate adversary proceeding within the bankruptcy is required, which adds cost and complexity. Success rates are low but not zero, and some borrowers pursue it when the loan balance dominates their finances. Discuss the realistic odds in your jurisdiction with an attorney before spending money on the attempt.
Before filing, list every debt you owe and ask an attorney which ones would actually be discharged. If your biggest burdens are non-dischargeable, bankruptcy may not be the right tool, and alternatives like payment plans or settlement could serve you better.
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