Exceptions to Bankruptcy Discharge

Some debt categories are excepted from a discharge that a debtor can obtain in Chapter 7, 11, or 13.  The most common debt categories are listed below. For a complete listing, refer to Bankruptcy Code Section 523.

1. Income Taxes

Income taxes are not dischargeable in bankruptcy if a required return was not filed, or if a required return was filed within two years prior to the bankruptcy filing. Bankruptcy Code Section 523(a)(1)(B).

2. Extension of Credit Under Fraudulent Conditions

An extension of credit obtained by fraud or materially false financial statement is not discharged. Bankruptcy Code Section 523(a)(2).

3. Domestic Support Obligations

A domestic support obligation is not discharged. Bankruptcy Code Section 523(a) (5).

4. Student Loans

Student loans are not discharged unless debtor can prove that not discharging the student loans would result in an “undue hardship.” For complete discussion, visit discharging student loans in bankruptcy.

5. Conclusion

This list is not exhaustive. Bankruptcy Code Section 523 sets forth all categories of debts which are non-dischargeable.