What Debts Cannot Be Discharged in Chapter 7 Bankruptcy?

 Posted on February 19, 2026 in Chapter 7 Bankruptcy

While Chapter 7 bankruptcy can eliminate many financial obligations, some people are surprised to learn that there are several types of debt you are still required to address. Federal law protects certain types of debt, especially those involving family support, taxes, or misconduct.

People often rely on the bankruptcy process to reset their finances. A recent report from the U.S. Courts found that personal and business bankruptcy filings have increased, with 344,825 people having filed for Chapter 7 over the last couple of years. 

The process is intended to provide debt relief, even if not all debts can be discharged. If you are considering bankruptcy in 2026, speaking with a Prince George’s County, MD bankruptcy lawyer can help you understand which debts might remain and how Chapter 7 may affect your financial future.

Which Debts Cannot Be Discharged in Chapter 7 Bankruptcy?

Federal law lists specific debts that are usually not dischargeable. These exceptions are found under 11 U.S.C. § 523 of the Bankruptcy Code. The purpose is to balance financial relief with ongoing legal and personal responsibilities.

Common nondischargeable debts include:

• Child support and alimony
• Most recent income tax debts
• Student loans, in most cases
• Criminal fines and court restitution
• Debts caused by fraud or false information
• Debts resulting from injuries caused by driving under the influence

These debts remain legally enforceable even after your bankruptcy case ends.

Why Are Certain Debts Not Wiped Clean in a Bankruptcy?

Chapter 7 bankruptcy is designed to help people recover financially, but it does not eliminate obligations tied to important legal duties or harmful conduct. For example, family support obligations exist to protect children and former spouses who depend on those payments.

That doesn’t mean that bankruptcy can’t still provide significant relief. It simply means that some financial responsibilities will continue. Understanding this distinction helps you prepare for what life will look like after bankruptcy.

When Can Student Loans Be Discharged in Chapter 7 Bankruptcy?

Student loans are difficult to eliminate, but discharge may be possible if you prove undue hardship. This requires filing a separate legal request within your bankruptcy case.

Courts evaluate whether repayment would prevent you from maintaining basic living standards, whether your financial hardship is likely to continue, and whether you made reasonable efforts to repay the loans.

This process can be complex, but an attorney can help you understand your options and set reasonable expectations.

Are Tax Debts Ever Dischargeable in Chapter 7?

Some tax debts may qualify for discharge, but many do not. Whether taxes can be discharged depends on factors such as when the taxes were due, when returns were filed, and whether fraud was involved.

Recent tax debts, payroll taxes, and penalties related to fraud typically remain your responsibility. Older income tax debts may qualify if they meet strict timing requirements. Reviewing your tax history carefully is an important step before filing for bankruptcy.

What Happens to Secured Debts Like Car Loans and Mortgages When You File a Chapter 7?

Secured debts involve property used as collateral, such as your vehicle or home. Chapter 7 bankruptcy may eliminate your personal obligation to repay the debt, but the lender often maintains the right to the property.

You may choose to continue making payments and keep the property, or surrender the property and eliminate the remaining balance. The best option depends on your financial goals and situation.

Which Debts Are Commonly Discharged in Chapter 7 Bankruptcy?

While some debts remain, many others can be discharged. Chapter 7 often eliminates unsecured debts that create financial stress.

Commonly discharged debts include:

• Credit card balances
• Medical bills
• Personal loans
• Utility balances
• Certain older tax debts

This discharge can provide meaningful relief and allow you to focus on rebuilding your finances.

Contact Our Beltsville, MD Chapter 7 Bankruptcy Attorney Today

Bankruptcy can offer relief, but knowing which debts will remain is critical to planning your future. At Bloc One Services, LLC, we provide compassionate and practical guidance to help clients regain financial stability. Our team focuses on helping individuals move forward with confidence and work toward a stronger financial future. 

If you are considering bankruptcy, contact a Prince George’s County, MD bankruptcy lawyer today. Call 240-200-0076 to schedule your free 30-minute initial consult.