What Debts Are Discharged in Bankruptcy?

A bankruptcy discharge is a court order that eliminates your personal liability for specific debts. Once a debt is discharged, you are no longer legally required to pay it, and creditors are permanently prohibited from trying to collect it. However, not all debts can be discharged — federal law identifies certain categories of debt that survive bankruptcy.

Debts That Are Typically Discharged

The following types of debts are generally dischargeable in Chapter 7 and Chapter 13 bankruptcy:

• Credit card balances — including interest, fees, and over-limit charges
• Medical and hospital bills — one of the most common reasons people file bankruptcy
• Personal loans and lines of credit
• Utility arrears — past-due electric, gas, water bills (future service may require a deposit)
• Lease obligations for property you're surrendering (past-due rent, vehicle leases)
• Deficiency balances after repossession (the amount still owed after a lender sells collateral)
• Business debts in certain circumstances
• Civil lawsuit judgments in many cases (exceptions apply for fraud or willful harm)
• Older income tax debts — federal income taxes that are more than 3 years old, assessed more than 240 days before filing, and for which the return was timely filed (all conditions must be met)

Debts That Are NOT Discharged (Non-Dischargeable)

Certain debts cannot be eliminated by bankruptcy, no matter what chapter you file:

Always non-dischargeable:

• Child support and alimony (domestic support obligations)
• Most student loans — federal and private (discharge requires proving "undue hardship" in a separate court proceeding, which is very difficult to establish)
• Recent income taxes — taxes less than 3 years old or assessed within the past 240 days
• Tax liens — even if the underlying tax debt is old enough to be discharged, a recorded tax lien survives bankruptcy and remains attached to property
• Debts from fraud or false pretenses — if you obtained credit by lying
• Debts from willful and malicious injury to another person or their property
• Fines and penalties owed to government agencies — including criminal fines and restitution
• Debts from driving under the influence that caused death or personal injury
• Certain education benefits if improperly obtained

Non-dischargeable if a creditor objects (and proves it in court):

• Debts obtained through fraud or misrepresentation
• Luxury goods or cash advances within 90 days of filing (presumed non-dischargeable)
• Debts for willful or malicious injury

Chapter 13 Discharges More Debt

Chapter 13 offers a "super discharge" — it can eliminate some debts that aren't dischargeable in Chapter 7, including certain property settlement obligations from divorce (but not domestic support obligations) and debts from willful injury to property.

What Happens to Secured Debts?

Discharge eliminates your personal liability for a debt, but it does not automatically remove a creditor's lien on property. If you discharge a car loan but don't reaffirm it, the lender can still repossess the vehicle — you just won't owe them money after the sale. Liens must be separately addressed in bankruptcy (through reaffirmation, redemption, or lien avoidance where allowed by law).

Learn about exempt property and what happens after you file to understand how discharge fits into the overall process. Easy-Case helps you identify your debt types during the interview to ensure they're properly categorized on your schedules.