While bankruptcy discharges most credit card balances, medical bills, and personal loans, Congress has explicitly designated specific obligations as non-dischargeable under Section 523 of the Bankruptcy Code.
Debts That Generally Survive Bankruptcy
- Domestic Support Obligations: Child support and spousal maintenance (alimony) are non-dischargeable under any chapter.
- Recent Tax Debts: Income taxes less than 3 years old, payroll/trust-fund taxes, and taxes tied to unfiled returns.
- Criminal Restitution & Fines: Criminal court fines, restitution orders, and DUI-related civil injury judgments.
- Student Loans: Government and private educational loans unless the debtor proves "undue hardship" in a separate adversary proceeding.
- Debts Incurred Through Fraud: Debts obtained via false pretenses, credit application fraud, or willful fiduciary embezzlement.