What Debts Are Not Wiped Out by Chapter 7?

Chapter 7 bankruptcy wipes out most unsecured debt — credit cards, medical bills, personal loans, old repossession and foreclosure deficiencies. But a specific list of debts is excepted from discharge under federal law, meaning you still owe them after your case closes: most student loans, recent income taxes and some other taxes, child support and alimony, most criminal fines and restitution, debts from fraud or "willful and malicious" injury, and debts you fail to list on your paperwork. Knowing this list before you file, not after, is one of the most useful things you can do.

None of this means Chapter 7 is a bad idea if you carry these debts. Wiping out everything else often frees up the income you need to actually deal with what survives. This is general information, not legal advice — the exceptions below come from the U.S. Bankruptcy Code (Title 11), and a qualified bankruptcy attorney should review your specific situation.

The Short List: Debts That Usually Survive Chapter 7

These exceptions to discharge live mainly in 11 U.S.C. § 523(a), with the rules for who can even receive a discharge in 11 U.S.C. § 727. In plain terms, the debts that typically are not wiped out include:

• Most federal and private student loans, unless you prove "undue hardship."
• Certain income taxes — generally recent ones — plus most payroll/trust-fund taxes and tax fraud penalties.
• Child support and alimony (called "domestic support obligations").
• Most criminal fines, restitution, and penalties owed to a government unit.
• Debts from fraud, embezzlement, or "willful and malicious" injury to a person or property.
• Debts from drunk-driving injuries or death.
• Debts you fail to list on your bankruptcy schedules, in some circumstances.

Also worth knowing: a discharge wipes out your personal obligation to pay a debt, but it does not erase a valid lien. If you owe money secured by property — a mortgage or car loan — the lender can generally still repossess or foreclose if you stop paying, unless you reaffirm and stay current. That's a separate issue from the exceptions below, which apply even to unsecured debt.

Student Loans: The Biggest One People Ask About

Federal and most private student loans are not automatically wiped out in Chapter 7. To discharge them, you must file a separate lawsuit inside your case, an adversary proceeding, and prove repaying would impose an "undue hardship" on you and your dependents. Most federal courts apply some version of a three-part test: your current inability to pay, whether that's likely to persist through much of the repayment period, and a good-faith effort to repay so far.

This bar used to be considered nearly impossible to clear. It has gotten more realistic: in late 2022 the Department of Justice and Department of Education adopted a joint process, still in effect and updated periodically, that uses a standardized attestation form to direct government attorneys to evaluate hardship claims more consistently, and some cases now resolve without a full trial. It's still a real legal proceeding with its own deadlines, and you generally need an attorney experienced in this specific niche — most bankruptcy lawyers don't litigate these cases regularly. This guidance can change, so confirm the current process before relying on it. Start at studentaid.gov's bankruptcy page and the U.S. Trustee's student loan guidance, and see our guide on getting out of student loan default if discharge isn't realistic for you right now — income-driven repayment and disability discharge may help even without filing.

Taxes: Some Survive, Some Don't

Tax debt is not automatically nondischargeable, but the rules are technical. Practitioners call the framework the "3-2-240 rule": older income tax debt can be discharged only if all three time tests are met — the return was due at least three years before you filed (counting extensions), you actually filed it at least two years before filing bankruptcy, and the IRS assessed the tax at least 240 days before your filing date, with no fraud or willful evasion. Miss any one and the debt survives. These periods can also pause for a prior bankruptcy case or a pending IRS offer in compromise, so the math isn't always simple counting-back.

Some taxes are essentially never dischargeable regardless of age, including trust-fund/payroll taxes withheld from employees. Pull your account transcripts at irs.gov before you file so the real dates can be checked, rather than guessed at, and see the IRS's own bankruptcy and tax debt guidance.

Child Support and Alimony

Domestic support obligations — child support, alimony/spousal support, and related debts like unpaid legal fees from a support case — are not discharged in Chapter 7, ever. This is one of the clearest, least flexible exceptions in the Code. Filing also does not pause support enforcement the way it pauses most other collection: the automatic stay generally does not stop wage withholding for support or license suspensions tied to arrears. If you're behind, bankruptcy won't erase that debt, but it can still help by discharging other debt so more of your income is free to catch up. See our guide on child support arrears and enforcement.

Criminal Fines, Restitution, and Certain Government Debts

Fines, penalties, and restitution ordered as part of a criminal sentence — including restitution to a crime victim — are not dischargeable; the law treats these as punishment, not an ordinary debt. Some civil penalties owed to a government unit for actual fraud can also survive. If a government debt is a major part of your situation, have it reviewed specifically, since how it was imposed can matter.

Debts From Fraud or "Willful and Malicious" Injury

Debts from fraud, false pretenses, embezzlement, larceny, or "willful and malicious injury" to a person or their property are excepted from discharge — but unlike most exceptions here, this one isn't automatic. The creditor must file an adversary proceeding asking the court to rule the debt nondischargeable, by a deadline typically counted from your meeting of creditors; miss it and the debt can be discharged anyway. Debts from driving-under-the-influence injuries are excepted under a related provision.

Debts You Forget to List

Every debt and every creditor's current address needs to go on your bankruptcy schedules. In a "no-asset" Chapter 7 case (the most common kind), an unlisted debt is often still discharged if the creditor genuinely had no notice of your case in time to file a claim — but the rule is stricter if your case has assets to distribute, and it's not something to count on. Leaving a creditor off, whether on purpose or by mistake, is a real risk. If you realize you missed one after filing, tell your attorney right away — schedules can usually be amended.

The Trap Most People Miss: Recent Purchases and Cash Advances

If you ran up credit card charges for "luxury goods or services," or took cash advances, in the weeks right before filing, the law presumes those specific charges are fraudulent and nondischargeable — roughly within the last 90 days for luxury purchases and 70 days for cash advances, above dollar thresholds set in the Bankruptcy Code that are adjusted periodically for inflation (necessities like groceries and utilities are excluded). Bottom line: don't run up new debt in anticipation of filing. It's one of the fastest ways to turn dischargeable debt into nondischargeable debt, and it can draw scrutiny to your whole case. Because those threshold figures change, a bankruptcy attorney can confirm the current numbers; for an overview of how discharge works, see the U.S. Courts bankruptcy basics.

Even So, a Discharge Still Helps

It's easy to focus on what bankruptcy can't fix and miss what it does. Discharging your other debt usually frees up real monthly cash flow you can put toward what survives — a support arrears plan, a tax installment agreement. The automatic stay also halts most collection the moment you file, giving you breathing room even on debts you'll still owe when the case ends. For many people, the math still favors filing.

What to Do

1. Inventory every debt honestly, including ones you're unsure how to categorize, and pull IRS transcripts if you owe back taxes so timing can be checked against real dates, not memory.
2. Stop using credit once you're seriously considering filing — recent charges can become nondischargeable.
3. Complete the required credit counseling course from a U.S. Trustee–approved agency before you file — this is a hard prerequisite, and a case filed without it can be dismissed. A separate debtor-education course is required after filing, before your discharge can be granted. Confirm approved providers at justice.gov/ust.
4. Talk to a qualified bankruptcy attorney before you file if you have significant tax debt, support arrears, student loans you hope to challenge, a fraud allegation, or any debt you're unsure how to categorize. Getting the chapter or timing wrong can cost you the discharge itself.

Beware of Debt-Relief Scams While You're Deciding

People weighing bankruptcy are prime targets for for-profit debt-settlement companies that charge upfront fees or promise to make debt "disappear," and for non-attorney "petition preparers" who fill out bankruptcy forms for a fee but cannot legally advise you which debts survive. A demand for payment before anything is done, or a guaranteed outcome, is a red flag. Lower-cost, legitimate help exists: legal aid organizations, law-school bankruptcy clinics, your local court's self-help resources, and the counseling agencies approved by the U.S. Trustee Program at justice.gov/ust. See our guide on vetting a debt relief company before you sign anything.

For eligibility and the process itself, see how Chapter 7 works and the means test; for what property you keep, see bankruptcy exemptions.

This article is general information, not legal advice, and does not create an attorney-client relationship. Confirm current rules at uscourts.gov and justice.gov/ust and talk to a qualified bankruptcy attorney — and be wary of any for-profit debt-relief or debt-settlement company, or non-attorney "petition preparer," that asks for money upfront or promises an outcome.