What Debts Cannot Be Discharged in Bankruptcy?

Debt stress can feel overwhelming, especially when medical bills stack up, credit cards keep climbing, and a foreclosure or vehicle repossession is hanging over your head. Yusufov Law Firm PLLC helps individuals and businesses in Mesa, Phoenix, and Tucson sort through these problems and move toward a cleaner slate. Here, we explain which debts can be erased in bankruptcy and which ones usually remain. Bankruptcy offers a fresh start, yet some obligations stay in place under federal law to protect the public interest and families.

What Is a Bankruptcy Discharge?

A bankruptcy discharge is a court order that wipes out your personal obligation on certain debts, and it blocks creditors from calling, suing, or garnishing on those discharged accounts. In Chapter 7, most unsecured consumer debts, such as medical bills and old credit cards, can be eliminated in a matter of months. In Chapter 13, you repay through a three- to five-year plan, then get a discharge of eligible balances that remain.

Even with those benefits, a discharge is not automatic for every kind of debt. The Bankruptcy Code lists categories that survive a case. Knowing which bucket your debt falls into helps you plan smarter from the beginning.

Absolute Exceptions: Debts That Are Never Discharged

Some debts stay with you no matter which chapter you file. These are set by Congress and courts, and they apply in Arizona courts just the same as anywhere in the country.

Family Support Obligations

Alimony, child support, and other domestic support obligations do not get erased. Bankruptcy does not change the amount owed, the schedule, or the family court’s power to enforce payment. In Arizona, family court orders stay in force after a bankruptcy case.

Tax Debts and Government Penalties

Most recent state and federal income taxes, typically those for the last three tax years, stay collectible. A federal tax lien also survives and remains attached to your property until paid or released. Government fines, traffic tickets, and criminal restitution must still be paid, and a discharge will not cancel them in Chapter 7 bankruptcy.  However, Chapter 13 bankruptcy allows certain government fines and traffic tickets to be discharged.

DUI-Related Personal Injury Judgments

If a person was injured or killed while you were driving under the influence, any civil judgment related to that harm cannot be discharged. This rule applies to both Chapter 7 and Chapter 13. Courts treat these judgments as a matter of public safety.

Unlisted or Forgotten Debts

Every creditor needs to be listed in your bankruptcy documents. If a debt is left out, it will often not be discharged unless the creditor had real notice of the case from another source. This is a common filing mistake, and it can be fixed only in narrow situations.

To keep your list complete, build a folder of bills, letters, and credit reports. Then double-check names and addresses before filing. A few extra minutes here can protect your discharge later.

• Pull credit reports from all three bureaus to catch old or sold accounts.
• Match each account to a current mailing address listed on a recent statement.
• List collection agencies and the original creditor when both are involved.

Once your schedules are accurate, your discharge has a much better chance of covering the debts you expect it to cover. Clean paperwork up front saves many headaches after the case closes.

Conditionally Non-Dischargeable Debts

Other debts can be discharged only if you pass additional tests or if a creditor does not file a timely objection. These items require closer attention before you decide how to proceed.

Student Loans and the Undue Hardship Standard

Federal and private student loans usually survive bankruptcy. A discharge is possible if you file a separate lawsuit in the bankruptcy court, called an adversary proceeding, and prove undue hardship. The court looks at whether paying the loans would prevent you from maintaining a minimal standard of living and if your situation is likely to last.

Recent federal government policy has made it easier for many borrowers to prove that their student loans should be discharged. Still, each case turns on your income, expenses, health, job outlook, and efforts to repay. Good records and a realistic budget make a real difference.

Debts Incurred Through Fraud

Debts created by false pretenses, false statements, or actual fraud can be excluded from discharge if a creditor objects. The creditor must prove what happened and that your actions were fraudulent, but if they do, the debt remains. Courts look at what you said, what you knew at the time, and whether the lender relied on it.

Money tied to embezzlement, larceny, or breach of fiduciary duty is treated the same way. If the facts show dishonest conduct, that balance is likely to remain after discharge. Evidence such as emails, applications, and bank records often decides these disputes.

Recent Luxury Purchases and Cash Advances

Credit purchases of luxury goods totaling more than $900 to a single creditor within 90 days before filing are presumed non-dischargeable. The same goes for cash advances over $1,250 taken within 70 days before filing. These rules exist to stop last-minute spending sprees.

You can rebut the presumption by showing the items were necessary or that you planned to pay. Timing and receipts matter here. If you expect to file soon, press pause on big nonessential spending.

Willful and Malicious Injury

Debts caused by intentional harm to a person or property are excluded from discharge if the harmed party objects in time. Accidents are treated differently, but purposeful damage is not forgiven. Facts around the event control the outcome.

Managing Non-Dischargeable Debt Effectively

Chapter 13 can be a strong tool when you have debts that will not be wiped out. A Chapter 13 plan can allow you to pay non-dischargeable debt, such as domestic support or taxes, over time, in affordable payments.    At the same time, Chapter 13 stops garnishments and collection activity, which gives you breathing room to deal with the non-dischargeable debt.  

Find Out Which Debts Bankruptcy Can and Cannot Eliminate

Not every debt is treated the same in bankruptcy. Taxes, student loans, domestic support obligations, and certain court judgments may require special analysis before you file. Yusufov Law Firm PLLC helps individuals and business owners across Mesa, Phoenix, and Tucson understand what can be discharged, what may survive, and how to build a strategy that fits your goals.

If you are considering bankruptcy, call our Tucson office at 520-745-4429 or our Mesa/Phoenix office at 480-788-0098. You can also reach out through our Contact Us page. We welcome your questions and are ready to help you move forward with clarity.