When filing for bankruptcy the purpose is to get rid of debt you cant afford. At the end of the bankruptcy process you are granted a discharge. Meaning debts that are discharged you no longer owe. However, there are certain debts that dont go away after filing bankruptcy. Some of these types of nondischargable debts are described below
- Taxes under three (3) years old. If you owe the IRS or State for taxes that are less than three years old it cannot be discharged.
- Taxes over three (3) years old. Certain taxes can be discharged if they are over three years old. To qualify to be dischargable you must have filed the tax return more than three years ago, been on collectability status for more than three years, and there cannot be any fraud involved in the preparation or collection of the tax return.
- Debt incurred by fraud. If you obtained property, money, loan, etc... by fraudulent means this debt cannot be discharged. However, in order for a creditor to show it was incurred by fraud they would have to sue you in a seperate action in the bankruptcy court first.
- Consumer debts that you to a single creditor which equals more than $600 in the last 90 days for a luxery item or services. Additionally cash advances to a single creditor of more than $875 taken out prior to 70 days before filing.
- Domestic Support obligations. In a chapter 7 this includes any order by the court in a domestic matter including property and debt distributions. However, in a chapter 13 property and debt distributions from a court order are dischargable.
- Student loans. However, you may be able to discharge a student loan if you qualify under the hardship exemption which narrowly means you have a disability or condition which prevents you from gaining employment with your degree.
- Debt from causing the death or injury of another while you were driving while intoxicated.
- Payments of restitution to any municipality, city, state, or federal government.
- for a fee or assessment that becomes due and payable after the order for relief to a membership association with respect to the debtor's interest in a unit that has condominium ownership, in a share of a cooperative corporation, or a lot in a homeowners association, for as long as the debtor or the trustee has a legal, equitable, or possessory ownership interest in such unit, such corporation, or such lot, but nothing in this paragraph shall except from discharge the debt of a debtor for a membership association fee or assessment for a period arising before entry of the order for relief in a pending or subsequent bankruptcy case
For a more detailed list of debts that are not dischargable you can review United States Code Section