What Bankruptcy Cannot Eliminate

Bankruptcy discharges most debts, but some survive. Understanding which debts are non-dischargeable under 11 U.S.C. section 523(a) is critical before you decide to file. This guide covers every major category of non-dischargeable debt for Kansas City filers.

Quick Reference: Dischargeable vs. Non-Dischargeable

Usually Dischargeable

  • Credit card debt
  • Medical bills
  • Personal loans
  • Utility bills
  • Old lease obligations
  • Deficiency balances after repo/foreclosure
  • Most civil judgments
  • Business debts
  • Some older tax debts (if rules are met)

Never or Rarely Dischargeable

  • Child support and alimony
  • Most student loans
  • Recent tax debts
  • Debts from fraud
  • DUI injury/death damages
  • Criminal fines and restitution
  • Willful and malicious injury debts
  • Debts not listed in your petition

Section 523(a) Breakdown: Non-Dischargeable Debts

Student Loans -- section 523(a)(8)

11 U.S.C. section 523(a)(8)

Student loans (federal and private) are presumed non-dischargeable. To discharge student loans, you must file an adversary proceeding and prove "undue hardship."

The Brunner Test (used in the 8th Circuit covering Missouri):

  1. Poverty: Based on current income and expenses, you cannot maintain a minimal standard of living for yourself and dependents if forced to repay
  2. Persistence: Additional circumstances exist indicating that this state of affairs is likely to persist for a significant portion of the repayment period
  3. Good faith: You have made good-faith efforts to repay the loans

This is a difficult test, but not impossible. Debtors with permanent disability, advanced age, or chronic illness have the best chances. The 10th Circuit (covering Kansas) also uses the Brunner test.

Full guide to the Brunner test and student loan discharge →

Tax Debts -- section 523(a)(1)

11 U.S.C. section 523(a)(1)

Income tax debts can be discharged in Chapter 7 only if they meet ALL of the following rules:

RuleRequirementWhat It Means
3-Year RuleTax return was due more than 3 years before filing2022 taxes (due April 2023) are eligible if you file bankruptcy after April 2026
2-Year RuleTax return was actually filed more than 2 years before filingIf you filed a late return in 2024, you must wait until 2026 to discharge that tax
240-Day RuleTax was assessed more than 240 days before filingIRS assessment typically happens when you file the return or after an audit

Additional requirements: The tax must be income tax (not payroll, sales, or excise tax). You must have filed a return (no discharge for unfiled returns). The return cannot be fraudulent. You cannot have willfully attempted to evade the tax.

In Chapter 13, non-dischargeable tax debts are treated as priority claims and must be paid in full through the plan, but interest stops accruing.

Complete guide to tax debt in bankruptcy →

Child Support and Alimony -- section 523(a)(5)

11 U.S.C. section 523(a)(5)

Domestic support obligations are never dischargeable in any chapter of bankruptcy. This includes:

  • Child support (current and past-due)
  • Spousal support / alimony / maintenance
  • Amounts owed under divorce property settlements (section 523(a)(15))
  • Attorney fees awarded in family court proceedings for support

In Chapter 13, you must pay all domestic support obligations in full through your plan. You must also remain current on any ongoing support obligations as a condition of receiving a discharge.

Fraud and False Pretenses -- section 523(a)(2)

11 U.S.C. section 523(a)(2)

Debts obtained through fraud, false pretenses, or false financial statements are non-dischargeable. Common examples:

  • Credit card charges made with no intent to repay
  • Loans obtained with falsified income or asset information
  • Debts from Ponzi schemes or investment fraud
  • Luxury purchases over $800 within 90 days before filing (presumed fraudulent)
  • Cash advances over $1,100 within 70 days before filing (presumed fraudulent)

Important: These debts are not automatically non-dischargeable. The creditor must file an adversary proceeding within 60 days of the first meeting of creditors and prove fraud by a preponderance of the evidence. If the creditor does not file, the debt is discharged.

DUI Damages -- section 523(a)(9)

11 U.S.C. section 523(a)(9)

Debts for death or personal injury caused by the debtor's operation of a motor vehicle, vessel, or aircraft while legally intoxicated are non-dischargeable in both Chapter 7 and Chapter 13.

This covers civil judgments from DUI/DWI accidents, wrongful death claims, and personal injury awards. Criminal fines and restitution related to DUI are also non-dischargeable under section 523(a)(7).

Willful and Malicious Injury -- section 523(a)(6)

11 U.S.C. section 523(a)(6)

Debts arising from willful and malicious injury to another person or their property are non-dischargeable. This requires intentional conduct -- mere negligence or recklessness is usually not enough.

  • Assault and battery damages
  • Intentional property destruction
  • Deliberate conversion of another's property
  • Some breach of fiduciary duty claims

The creditor must file an adversary proceeding to except these debts from discharge.

Government Fines and Penalties -- section 523(a)(7)

11 U.S.C. section 523(a)(7)

Fines, penalties, and forfeitures payable to a governmental unit are not dischargeable if they are not compensation for actual pecuniary loss. This includes:

  • Criminal fines and restitution
  • Traffic tickets and court costs
  • Tax penalties
  • Regulatory fines

Embezzlement and Larceny -- section 523(a)(4)

11 U.S.C. section 523(a)(4)

Debts arising from fraud or defalcation while acting in a fiduciary capacity, embezzlement, or larceny are non-dischargeable. This commonly applies to:

  • Trustees, executors, or corporate officers who misused funds
  • Partners who converted partnership assets
  • Theft-related civil judgments

Debts Not Listed -- section 523(a)(3)

11 U.S.C. section 523(a)(3)

Debts that you fail to list in your bankruptcy schedules may not be discharged, especially if the creditor did not have notice or actual knowledge of the case in time to file a proof of claim or a dischargeability complaint. This is why complete and accurate schedules are essential.

Chapter 7 vs. Chapter 13: Non-Discharge Differences

Some debts that are non-dischargeable in Chapter 7 can be dealt with differently in Chapter 13:

Debt TypeChapter 7Chapter 13
Property settlement debts (divorce)Non-dischargeableDischargeable (paid through plan)
Willful/malicious injuryNon-dischargeableNon-dischargeable
Priority tax debtsNon-dischargeableMust pay in full through plan
Student loansNon-dischargeable*Non-dischargeable*
Child support / alimonyNon-dischargeableNon-dischargeable (priority)
DUI damagesNon-dischargeableNon-dischargeable
Fraud debtsNon-dischargeableNon-dischargeable

*Unless undue hardship is proven through an adversary proceeding.

Full Chapter 7 vs. Chapter 13 comparison →

Frequently Asked Questions

Can student loans be discharged in bankruptcy?

Student loans are generally not dischargeable unless you prove "undue hardship" through an adversary proceeding. The 8th Circuit (Missouri) and 10th Circuit (Kansas) both use the Brunner test. Debtors with permanent disability have the strongest cases. Full Brunner test guide.

Can tax debt be discharged in bankruptcy?

Some income tax debts can be discharged if they meet the 3-year rule, 2-year rule, and 240-day rule. The return must have been filed, cannot be fraudulent, and you cannot have willfully evaded the tax. Full tax debt guide.

Is child support dischargeable in bankruptcy?

No. Child support and alimony are never dischargeable in any chapter. In Chapter 13, they must be paid in full through the plan, and you must stay current on ongoing obligations as a condition of discharge.

What about debts from fraud?

Debts from fraud, false pretenses, or false financial statements are non-dischargeable under section 523(a)(2). However, the creditor must file an adversary proceeding to prove fraud. If they do not file within 60 days of the 341 meeting, the debt is discharged by default.

Are DUI damages dischargeable?

No. Civil debts for death or personal injury caused by drunk driving are non-dischargeable under section 523(a)(9) in both Chapter 7 and Chapter 13. Criminal fines and restitution from DUI are also non-dischargeable.

Still Worth Filing?

Even if some of your debts are non-dischargeable, bankruptcy can still help by eliminating the debts that are dischargeable. Wiping out credit card and medical debt frees up income to deal with debts that survive. Many people with non-dischargeable debts still benefit significantly from filing. Compare your chapter options.

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