What debts typically survive a bankruptcy filing?

Bankruptcy can provide meaningful relief, but it is not a blanket eraser for every obligation. Below I explain the categories of debt that commonly survive a Chapter 7 or Chapter 13 filing, why they survive, and practical steps you can take before and after filing. My guidance is drawn from years helping clients in bankruptcy and the U.S. Courts and Consumer Financial Protection Bureau guidance (see sources below).

Core categories of debts that usually survive

  • Student loans (federal and private). Most student loan debt is nondischargeable unless the borrower wins an adversary proceeding and proves “undue hardship” — usually by meeting the Brunner test used in many courts (inability to maintain minimal living standards while repaying, likelihood the hardship will persist, and good-faith efforts to repay). This is a high bar; near-universal discharge is rare. (U.S. Courts; CFPB)

  • Domestic support obligations. Child support and spousal maintenance (alimony) are priority debts and cannot be discharged in bankruptcy under 11 U.S.C. §523(a)(5). If you owe arrears, you must keep paying them after the bankruptcy discharge.

  • Recent income tax debts and certain tax penalties. Income taxes may be nondischargeable unless specific timing and filing conditions are met. Generally, to discharge a tax debt you must meet tests related to the tax return due date, the filing date, and assessment timing (commonly called the three tests). Recent tax returns and many priority tax claims will survive. (See U.S. Courts and IRS guidance.)

  • Debts for fraud, false pretenses, embezzlement, or larceny. Debts incurred through intentional wrongdoing are typically nondischargeable. Creditors often challenge these debts in an adversary proceeding.

  • Debts for willful and malicious injury; death or personal injury caused by driving while intoxicated is nondischargeable in many cases under federal law.

  • Government fines and certain penalties. Criminal fines and some civil penalties owed to government agencies often survive.

  • Student or educational benefit overpayments and certain government loan overpayments are frequently nondischargeable depending on statute.

  • Secured debts and liens. Bankruptcy discharge eliminates your personal liability for pre-petition unsecured debts, but secured creditors retain their lien on the collateral unless the lien is avoided or the collateral is surrendered. If you want to keep a car or house, you normally must continue paying or reaffirm the debt or propose a plan (Chapter 13) that treats the secured debt.

How Chapter 7 and Chapter 13 differ on surviving debts

  • Chapter 7 (liquidation): Most unsecured dischargeable debts are wiped out, but nondischargeable claims (student loans, support, recent taxes, fraud) remain. Secured creditors can repossess collateral if you stop paying; discharge removes personal liability but not the lien unless the trustee avoids it.

  • Chapter 13 (repayment plan): You propose a 3–5 year repayment plan. Priority and nondischargeable debts must be paid through the plan (or remain after the plan), so many obligations that survive Chapter 7 will still need to be handled in Chapter 13—though Chapter 13 can provide a way to keep property while catching up on secured loans.

Why some debts survive: the policy reasons

Laws treat certain debts as non-forgivable to protect public interests and third parties. Examples:

  • Domestic support protects children and former spouses.
  • Tax nondischargeability prevents abuse of the public fiscus and preserves the tax system.
  • Non-discharge for fraud prevents debtors from benefiting from wrongful conduct.

Common scenarios and what to expect (practical examples)

  • Credit cards: Usually dischargeable in both Chapter 7 and Chapter 13. After discharge you no longer owe the balance to the issuer, but if you gave a cardholder a secured version (rare), or there was fraud in obtaining the card, a creditor could object.

  • Medical bills: Commonly dischargeable as unsecured debt unless tied to a lien.

  • Mortgages and car loans: The loan itself is often not discharged if you keep the collateral—creditors can enforce their lien. You can surrender the collateral to eliminate the debt, reaffirm the loan to keep the collateral and remain personally liable, or strip liens under certain Chapter 13 plans or lien-avoidance rules.

  • Federal student loans: Highly unlikely to be discharged; you must file an adversary complaint and prove undue hardship. In practice, many clients find alternatives (income-driven repayment, disability discharge, loan rehabilitation) more feasible than litigation.

Taxes: the three timing tests (high level)

To consider whether an income tax might be dischargeable, courts and the IRS look at timing and filing requirements. Key elements commonly used are:

  • The tax return due date (including extensions) must be at least three years before the bankruptcy filing.
  • The tax return must have been actually filed at least two years before the filing.
  • The tax must have been assessed by the IRS at least 240 days before the bankruptcy filing (subject to exceptions).

These are technical rules and exceptions exist. For an in-depth look see the FinHelp article on how bankruptcy interacts with tax debt and the U.S. Courts guidance. (U.S. Courts; IRS)

Proving nondischargeable status: adversary proceedings

Creditors seeking to preserve a debt, or debtors trying to discharge a student loan, must often file an adversary proceeding inside the bankruptcy case. This is a courtroom-style proof process with rules of evidence—another reason to consult counsel early.

Practical steps before filing

  1. Inventory debts and categorize them as likely dischargeable vs nondischargeable. Identify support orders, student loans, and recent taxes.
  2. Get copies of filed tax returns and assessments; these affect whether tax debts are dischargeable.
  3. Talk to a bankruptcy attorney about whether Chapter 7 or Chapter 13 fits your goals, especially if you want to keep a house or car.
  4. For student loans, explore administrative options first (IDR plans, Public Service Loan Forgiveness, disability discharge) since court discharge is difficult.
  5. Consider negotiating with creditors where possible (settlement, forbearance) before filing.

After filing: managing surviving debts and rebuilding

  • Continue paying nondischargeable debts (child support, alimony, student loans, certain taxes). Falling behind after discharge can lead to enforcement actions.
  • If you kept secured property, stay current on payments or you risk repossession or foreclosure.
  • Rebuild credit by using secured credit cards or small installment loans that you repay on time. Bankruptcy filings appear on credit reports (Chapter 7: generally up to 10 years; Chapter 13: generally up to 7 years) but you can rebuild faster with consistent on-time payments. (CFPB; credit bureaus)

When to consult a professional

In my practice I recommend consulting a bankruptcy attorney and a tax professional when taxes or student loans are involved. Bankruptcy paperwork is technical; mistakes can leave you unexpectedly liable for debts you thought would disappear.

Key takeaways

  • Bankruptcy can eliminate many unsecured debts, but several categories—most notably student loans, domestic support, and certain taxes—usually survive.
  • Secured creditors often keep liens on collateral even after discharge; you must decide whether to surrender, reaffirm, or keep paying under a plan.
  • Proving a debt is dischargeable (especially student loans) often requires additional court proceedings and a high evidentiary burden.
  • Plan ahead: inventory debts, collect tax documents, consult professionals, and explore administrative options for student loans.

Professional disclaimer: This article is educational and not legal or tax advice. For advice tailored to your circumstances, consult a qualified bankruptcy attorney and a tax professional. For federal guidance, see the U.S. Courts Bankruptcy Basics and Consumer Financial Protection Bureau materials listed below.

Sources and further reading

If you want, I can add a downloadable checklist of documents to gather before meeting an attorney.