Debts
Which debts does bankruptcy wipe out, and which stay?
A discharge is a court order that says you do not have to pay most of your debts. Unsecured debts such as credit card and medical bills may be discharged. The debts that are not discharged in bankruptcy include most taxes, child support, alimony, most student loans, and court fines and criminal restitution. And a lender with a lien on your home or car may still be able to take the property back, even when your personal liability is discharged.1 2 3
Connect to a bankruptcy lawyerBefore you ask whether you can file, ask whether filing would solve your problem. This guide sorts debts into the ones a discharge usually covers and the debts that are not discharged in bankruptcy.
General information, not legal advice. Rules and amounts change; check with a lawyer or the court before you act.
In this guide
What does a discharge do?
A discharge releases you from personal liability for the debts it covers. It is a permanent order that prohibits creditors from taking any form of collection action on those debts, including lawsuits, telephone calls and letters.4
It reaches only debts that arose before the date you filed. In Chapter 7 it is available only to individuals, not to partnerships or corporations.1 3
Which debts can usually be discharged?
Unsecured debt is debt with no mortgage, lien or other security behind it. Credit card and medical debt are the examples the Federal Trade Commission gives of unsecured debts that both Chapter 7 and Chapter 13 may discharge.5 2
Our other guides look at particular kinds of debt one at a time, such as personal loans, payday loans, utility arrears and court judgments.
Which debts usually survive bankruptcy?
The Bankruptcy Code lists 19 categories of debt that are excepted from discharge in Chapter 7. These are the ones people meet most often.4
| Type of debt | General rule |
|---|---|
| Taxes4 3 | Certain tax claims are not discharged. The rules depend on the kind of tax and its history, so this is a question for a lawyer |
| Child support and alimony3 | Not discharged |
| Divorce and separation debts6 | In Chapter 7, other debts to a spouse, former spouse or child that come from a divorce or separation, such as a property settlement, are not discharged either |
| Student loans6 7 | Generally not discharged unless you prove undue hardship in a separate lawsuit inside the case, called an adversary proceeding |
| Fines, penalties and restitution4 3 | Fines and penalties owed to governmental units and certain criminal restitution orders are not discharged |
| Injury caused by intoxicated driving3 | Debts for death or personal injury caused by driving while intoxicated are not discharged |
| Debts you left off your paperwork1 4 | A debt that is not listed in your schedules may not be discharged |
| Some housing and retirement plan debts4 | Certain condominium or cooperative housing fees and debts owed to certain tax-advantaged retirement plans are not discharged |
| Debts you choose to reaffirm5 | A reaffirmation agreement keeps a debt, often a car loan, so you stay liable for it in exchange for keeping the collateral |
What about debts from fraud or deliberate harm?
These work differently. Debts tied to fraud or malicious conduct are not excepted automatically. The creditor has to ask the court to rule that the debt survives. If the creditor does not ask, or the court does not agree, the debt is discharged.4
Recent spending can make that request easier for a creditor. For cases filed on or after April 1, 2025, more than $900 owed to a single creditor for luxury goods or services bought within 90 days before filing is presumed nondischargeable, and so are cash advances of more than $1,250 taken within 70 days before filing.6 8
What happens to a mortgage or a car loan?
A secured debt is backed by a mortgage or another lien. Home mortgages and auto loans are the usual examples.5
A discharge deals with your personal liability, not with the lien. A valid lien that was not removed in the case remains afterward, and the lender may enforce it to recover the property.4 3
So with a financed home or car, the real question is whether you want to keep it and what keeping it takes. In Chapter 7 a debtor may reaffirm the debt, agreeing to keep paying in exchange for keeping the collateral. Chapter 13 can let a homeowner catch up missed mortgage payments over time through the plan.5 9
Does Chapter 13 erase more than Chapter 7?
Somewhat. Debts that can be discharged in Chapter 13 but not in Chapter 7 include debts for willful and malicious injury to property, debts taken on to pay nondischargeable taxes, and debts from property settlements in a divorce or separation.9
Support, certain taxes, most government funded or guaranteed education loans and long term obligations such as a home mortgage are not discharged in Chapter 13 either.9
How can you size up your own debts?
A simple exercise shows whether a discharge would change much for you.
- Write down every debt, including the ones you dispute and the ones you plan to keep paying.10
- Mark the debts that are secured by a home, a car or other property.5
- Mark the debts that appear in the table above.4
- Take the list to a lawyer if taxes, a fraud claim or a recent large purchase is on it. The federal courts advise talking to a lawyer about the scope of the discharge before filing.3
Common questions
Does bankruptcy erase all my debts?
No. A discharge covers most debts, but some cannot be discharged, such as most taxes, child support, alimony and most student loans.1
Is credit card debt discharged in bankruptcy?
Usually yes. Credit card and medical debt are unsecured debts that both Chapter 7 and Chapter 13 may discharge. The exceptions are a debt a court finds was run up by fraud, and recent luxury purchases or cash advances that are presumed nondischargeable.2 4 6 8
What if I forget to list a debt?
It is possible that the debt will not be discharged. List all of your property and debts in your schedules.1
Can my co-signer still be made to pay?
Yes. Your discharge does not change anyone else's liability for the same debt.11
Sources
Official courts & government references- U.S. Trustee Program: Bankruptcy Information Sheet
- FTC Consumer Advice: How To Get Out of Debt
- Chapter 7 - Bankruptcy Basics
- Discharge in Bankruptcy - Bankruptcy Basics
- Glossary of Legal Terms (uscourts.gov)
- 11 U.S. Code § 523(a)(15) (Cornell LII)
- DOJ: Student Loan Discharge Guidance: Fact Sheet (Nov. 17, 2022)
- Federal Register, 90 FR 8941 (Feb. 4, 2025), Judicial Conference: Adjustment of Certain Dollar Amounts Applicable to Bankruptcy Cases
- Chapter 13 - Bankruptcy Basics
- Instructions: Bankruptcy Forms for Individuals (uscourts.gov)
- 11 U.S. Code § 524(e) (Cornell LII)