What Debts Survive Bankruptcy in 2026: Non-Dischargeable Debts Explained

Bankruptcy eliminates many types of debt, but not all. Section 523 of the Bankruptcy Code lists the categories of debt that survive bankruptcy and remain collectible after your discharge. Understanding which of your debts fall into non-dischargeable categories before you file is essential for setting realistic expectations about what bankruptcy will actually solve for your financial situation. Filing bankruptcy to escape a debt that cannot be discharged wastes the filing, the filing fee, and the credit impact.

Student Loans: The Hardest Debt to Discharge

Federal and private student loans are dischargeable in bankruptcy only if you can prove that repaying them would impose an undue hardship on you and your dependents. The standard for undue hardship, established by the Brunner test used in most circuits, requires showing that you cannot maintain a minimal standard of living for yourself and your dependents while repaying the loans, that your financial situation is likely to persist for a significant portion of the repayment period, and that you have made good faith efforts to repay the loans.

This is a difficult standard to meet. Courts have traditionally been reluctant to discharge student loans, though there has been some softening of this position in recent years, particularly for borrowers who are permanently disabled, elderly, or whose earning capacity has been permanently impaired. The Department of Justice and Department of Education issued updated guidance in 2022 simplifying the process for borrowers who file an adversary proceeding seeking discharge, including a new attestation form that can streamline the process for clearly qualifying cases.

Child Support and Alimony: Always Non-Dischargeable

Domestic support obligations, which include child support and alimony under a court order or written separation agreement, are absolutely non-dischargeable in both Chapter 7 and Chapter 13 bankruptcy. There is no exception and no hardship test. If you owe back child support or alimony, bankruptcy will not eliminate it. You will emerge from bankruptcy still owing every dollar of domestic support arrears that existed when you filed, plus any additional amounts that accrued during your bankruptcy case.

In Chapter 13, you must pay all domestic support arrears in full through your repayment plan to receive a discharge. This is one of the mandatory plan requirements. Failure to stay current on ongoing domestic support obligations during a Chapter 13 case can result in dismissal of the bankruptcy. The policy behind this absolute non-dischargeability is that the financial needs of children and former spouses who depend on these payments outweigh the fresh start interest of the debtor.

Income Taxes: Dischargeable Under Specific Conditions

Federal and state income taxes can potentially be discharged in bankruptcy, but only if several specific conditions are all met. The tax return must have been due at least three years before the bankruptcy filing date. The return must have been actually filed at least two years before the bankruptcy filing. The tax assessment must be at least 240 days old. No fraud or willful tax evasion can be involved. And the tax liability must be a standard income tax, not a trust fund tax or payroll tax.

Recent income taxes, tax fraud penalties, and trust fund recovery penalties (which the IRS assesses against business owners for failing to pay over employee payroll taxes) survive bankruptcy. The calculation of whether a specific tax debt meets the timeline requirements requires checking the exact filing dates and assessment dates, which can require pulling IRS transcripts. Taxes that cannot be discharged remain collectable by the IRS after bankruptcy.

Debts Incurred Through Fraud

Debts obtained through fraudulent conduct are non-dischargeable, but only if the creditor takes action to object to the discharge of that specific debt during the bankruptcy case. Fraud-based non-dischargeability is not automatic. The creditor must file an adversary proceeding within the bankruptcy case within 60 days of the first creditors meeting, and must prove the elements of fraud. If the creditor does not file an objection, even a debt incurred through fraud will be discharged.

Fraudulent conduct that can make a debt non-dischargeable includes making false statements on a credit application, using credit with no intent to repay shortly before bankruptcy, and purchasing luxury goods on credit within 90 days of filing. The Bankruptcy Code creates a presumption of fraud for luxury purchases over $800 within 90 days of filing and cash advances over $1,100 within 70 days of filing. These presumptions can be rebutted but create a significant hurdle.

Criminal Fines and Restitution

Fines and restitution imposed by courts as part of a criminal sentence cannot be discharged in bankruptcy. If you were convicted of a crime and ordered to pay a fine to the government or restitution to victims, those obligations survive your bankruptcy case. This applies to federal, state, and local criminal court orders.

Civil penalties assessed by government agencies for violating regulations may or may not be dischargeable depending on their nature. Penalties that are purely punitive (designed to punish and deter rather than compensate for harm) are more likely to be dischargeable. Penalties that serve a compensatory function are treated more like debts owed to the government and may be non-dischargeable. This is an area where the analysis depends on the specific agency and the nature of the violation.

DUI-Related Debt and Willful Injury

Debts for death or personal injury caused by operating a vehicle while intoxicated (DUI or DWI) are non-dischargeable. If you were in a drunk driving accident and a civil judgment was entered against you for the victim's injuries or death, that judgment cannot be discharged. This is true regardless of whether you were convicted criminally or only faced a civil suit.

More broadly, debts arising from willful and malicious injury to another person or their property are non-dischargeable, again requiring the creditor to object in an adversary proceeding. Willful means the debtor intended to cause the injury, not just intended to perform the act that caused it. Negligent conduct that causes injury generally does not meet the willfulness standard, while intentional assault or deliberate property destruction typically does.

What Bankruptcy Actually Discharges

Despite these exceptions, bankruptcy eliminates the vast majority of consumer debts. Credit card balances, medical bills, personal loans, utility bills, most civil judgments (that did not involve fraud or willful injury), lease obligations for surrendered property, and deficiency balances on repossessed vehicles are all dischargeable. For someone buried under credit card debt and medical bills, bankruptcy can eliminate tens or hundreds of thousands of dollars of debt and provide a genuine fresh start.

Understanding which debts you carry that fall into non-dischargeable categories helps you evaluate whether bankruptcy makes sense. If most of your debt is student loans, child support, and recent taxes, bankruptcy eliminates little and may not be worth the cost and credit impact. If most of your debt is credit cards and medical bills, bankruptcy can be transformative. Use our bankruptcy calculator to evaluate your specific situation, and read our guide to Chapter 7 vs Chapter 13 to understand which path fits your circumstances.