DAY 19 — Can You Rebuild Credit After Bankruptcy?
Week: Week 3: Fear + Objections
Intent: Mid-Intent | Non-Dischargeable Debts
Not all debts can be wiped out in bankruptcy. Learn which debts survive Chapter 7 and Chapter 13, and what your options are for non-dischargeable obligations.
Certain debts survive bankruptcy and cannot be discharged. These include student loans, child support, alimony, recent taxes, criminal fines, and debts arising from fraud. Understanding which debts are non-dischargeable helps you evaluate whether bankruptcy makes sense for your specific situation.
The Non-Dischargeable Debt List
Student Loans
Dischargeable only under 'undue hardship' — a very high legal standard rarely met. This requires a separate adversary proceeding and proof that repayment would cause severe, sustained hardship. For most borrowers, student loans survive bankruptcy.
Child Support and Alimony
Domestic support obligations are never dischargeable in any chapter of bankruptcy. If anything, bankruptcy courts prioritize getting these paid. However, Chapter 13 can help catch up on arrears.
Most Recent Federal and State Tax Debts
Recent tax debts (generally within 3 years) are non-dischargeable. Older taxes may be dischargeable in Chapter 7 if specific conditions are met (3-year rule, 2-year rule, 240-day rule). Tax debt strategy requires careful analysis.
Debts from Fraud
If a creditor can prove you obtained money through fraud, false representations, or embezzlement, that specific debt can be declared non-dischargeable through an adversary proceeding.
Criminal Fines and Restitution
Fines, fees, and restitution orders imposed through criminal proceedings are non-dischargeable.
DUI-Related Injury/Death Judgments
Debts arising from DUI accidents causing personal injury or death cannot be discharged.
Certain Government Overpayments
Some government benefit overpayments (particularly recent ones) may survive bankruptcy.
How Non-Dischargeable Debts Affect Your Decision
If your primary debts are non-dischargeable (student loans, taxes, domestic support), bankruptcy may offer less benefit. However, discharging other dischargeable debts can free up income to address non-dischargeable obligations — which can still make filing worthwhile.
Maryland-Specific Insight
Maryland state tax debts follow the same general rules as federal taxes. Maryland also has specific rules around government-mandated court costs and public defender fees — speak with an attorney if these are part of your debt picture.
Reality Check
Don't let one non-dischargeable debt prevent you from getting relief on all your other debts. A complete picture of what can — and cannot — be discharged is the foundation of a sound bankruptcy decision.
Related Questions
→ What Debts Are Eliminated in Chapter 7?
→ Should I File Bankruptcy or Try to Settle My Debt?
→ Can I File Bankruptcy if I Owe Taxes?
