Debts bankruptcy can't erase

When your bankruptcy ends, you get a discharge (a court order that wipes out the debts it covers). Debts that aren't covered are called "nondischargeable." You'll still owe them after your case closes.

Child support and alimony

Bankruptcy never erases child support or alimony (these debts get top priority by law). In Chapter 13, you can catch up on past-due support through your plan, but you have to stay current on new payments while your case is open.

Filing also won't stop wage withholding or license suspension related to child support payments.

Most taxes

Bankruptcy doesn’t usually help with recent tax bills, but older income taxes can sometimes be wiped out if they meet all of these rules:

• The tax return was due at least three years before you filed bankruptcy.
• You filed the return at least two years before your bankruptcy.
• The IRS assessed the tax at least 240 days before you filed.

You also can't have filed a fraudulent return or tried to evade the tax, and taxes an employer withheld from workers' paychecks and never paid over can't be erased.

Student loans

Federal and most private student loans can only be erased if you prove that repaying them would cause "undue hardship." That means filing a separate case, called an adversary proceeding, within your bankruptcy. Courts look at whether you can maintain a basic standard of living and whether you've made good-faith efforts to repay.

Fines, penalties, and restitution

Criminal fines, court-ordered restitution, and most fines owed to the government make it through bankruptcy. So do debts for death or injury related to DUI, traffic tickets, and other fines owed to a city or state.

Debts tied to fraud or bad conduct

If a creditor shows that you got money through fraud or lies, or intentionally harmed someone or their property, the court can rule that the debt survives. Creditors have to raise these claims during your case.

Recent spending matters, too. Luxury purchases of more than $900 from one creditor within 90 days before filing, and cash advances of more than $1,250 within 70 days, are presumed to be fraud.

Divorce-related debts

Debts you owe an ex-spouse under a divorce agreement, other than support, can't be erased in Chapter 7. They can sometimes be erased in Chapter 13.

Secured debts

A secured debt, like a mortgage or car loan, is backed by property. Bankruptcy can erase your personal obligation to pay, but the lender's claim on the property, called a lien, usually can’t be. If you stop paying, the lender can still foreclose or repossess. It just can't come after you for any remaining balance.

Co-signed debts

Your bankruptcy protects you, but it doesn’t protect anyone who co-signed with you. In Chapter 7, the creditor can still go after your co-signer for the full balance. Chapter 13 can offer some protection to co-signers while your plan lasts.