Eligibility Updated June 2026 8 min read Reviewed by Ron Chini, Esq.

Which Debts Can't Be Wiped Out in Bankruptcy?

Reviewed by Ron Chini, Esq. · CA State Bar No. 263308 · Bankruptcy attorney in Irvine, CA since 2009.
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Chapter 7 erases most of the debt that crushes people — but not all debt. A short list of obligations survives a discharge under Bankruptcy Code § 523. Here's what bankruptcy can't wipe out, what it can, and the student-loan rule that has changed dramatically.

The good news first: the debts that drive most people to bankruptcy — credit cards, medical bills, personal loans, old utility and phone bills, most lawsuit judgments, deficiency balances after a repo or foreclosure — are fully dischargeable in Chapter 7. For the typical filer, the overwhelming majority of what they owe simply disappears.

But Congress carved out exceptions in § 523(a) — categories of debt that survive a discharge because of public policy. Knowing which is which before you file matters, because a case built on the assumption that the wrong debt will vanish leads to a nasty surprise.

Debts that usually survive bankruptcy

These are the most common non-dischargeable categories for consumers:

Generally NOT discharged

Recent income taxes (returns due within ~3 years), unfiled returns, and tax fraud
Child support and spousal support (domestic-support obligations)
Most student loans — unless "undue hardship" (see below)
Debts from fraud, false pretenses, or a false financial statement
Debts for willful and malicious injury to a person or property
Death or injury you caused by driving drunk
Criminal fines, penalties, and restitution
Debts you failed to list in your bankruptcy

Generally DOES get discharged

Credit card balances
Medical bills
Personal and payday loans
Most lawsuit judgments
Deficiency balances after repossession/foreclosure
Old utility, phone, and rent debt
Business debts you personally guaranteed (often)

Some "exceptions" only apply if a creditor fights

A few categories — debts alleged to arise from fraud or willful injury — aren't automatically non-dischargeable. They survive only if the creditor files an objection (an adversary proceeding) and proves it. Most consumer debts are never challenged this way. Whether a specific debt is at risk is exactly the kind of question to raise with an attorney before filing.

Taxes: it depends on the type and age

Tax debt is the category people most often get wrong. Some older income taxes can be discharged — generally if the return was due more than three years ago, was actually filed at least two years ago, was assessed more than 240 days ago, and isn't tied to fraud or evasion. Recent income taxes, payroll/"trust fund" taxes, and tax liens typically survive. The timing rules are technical and worth checking against your transcripts before you assume either way.

Student loans: the rule has changed

The old conventional wisdom — "student loans can never be discharged" — is out of date. Student loans are non-dischargeable under § 523(a)(8) unless repaying them would impose an undue hardship, and since November 2022 the Department of Justice and Department of Education have used new guidance and a streamlined attestation process that has made discharge far more attainable. Under that process, a large majority of borrowers who pursued it have received a full or partial discharge. It still requires a separate court proceeding, but it is no longer the near-impossible hurdle it once was — if student debt is your burden, it's worth a real evaluation rather than assuming you're stuck.

How to plan around it

The practical takeaway: most consumer debt is wiped out, a short list isn't, and a couple of categories depend on the facts. Before filing, a good attorney maps every debt you owe into "discharged" and "survives" columns so there are no surprises — and so you can decide whether Chapter 7, Chapter 13, or another path makes the most sense for the debts that remain.

Frequently asked questions

Does Chapter 7 wipe out credit card and medical debt?

Yes. Credit cards, medical bills, personal loans, and most judgments are fully dischargeable — these are exactly the debts Chapter 7 is built to erase, and they make up the bulk of most filers' debt.

Can I discharge student loans in bankruptcy?

Possibly — the rule changed. Student loans survive unless repayment is an "undue hardship," and a November 2022 DOJ/Education process has made that showing much more achievable, with most borrowers who pursued it receiving full or partial relief. It takes a separate court proceeding, but it's worth evaluating rather than assuming you can't.

Can I get rid of taxes in bankruptcy?

Sometimes. Older income taxes that meet specific timing rules (roughly: return due 3+ years ago, filed 2+ years ago, assessed 240+ days ago, no fraud) can be discharged. Recent taxes, payroll taxes, and tax liens generally are not. The timing is technical — check your transcripts with an attorney.

Are child support and alimony ever dischargeable?

No. Domestic-support obligations — child support and alimony — are never discharged in bankruptcy. (Some non-support divorce property-settlement debts can be discharged in Chapter 13 but not Chapter 7.)

What happens if I forget to list a debt?

A debt you fail to list may not be discharged, depending on the circumstances. That's a big reason to work with an attorney who makes sure every creditor is scheduled — completeness protects your discharge.

Sources

Ron Chini, Esq.

Bankruptcy Attorney · CA State Bar No. 263308

Ron has practiced bankruptcy law from his Irvine office since 2009 and has helped 500+ Southern California families get a fresh start. You work directly with him — not a paralegal or a call center.

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