You’ve been making tough choices for months. Should you pay the electric bill or buy groceries? Can you skip your car insurance payment one more time? The collection calls keep coming, and you’ve stopped answering numbers you don’t recognize. Filing for bankruptcy might finally give you the breathing room you need, but here’s something that catches many people off guard: not every debt goes away just because a bankruptcy court says so.
Think of bankruptcy as a powerful tool, not a magic eraser. While it can wipe out credit card balances and medical bills that have been crushing you, certain obligations stick around no matter what chapter you file. Whether you’re considering Chapter 7 or Chapter 13 in Kansas City, knowing which debts survive bankruptcy helps you make smarter decisions about your financial future.
Why Do Some Debts Get Special Treatment?
Congress carved out exceptions to discharge based on public policy. The federal government decided that certain financial obligations matter too much to society to let people walk away from them. When you look at the list of nondischargeable debts, you’ll notice a pattern—most of these debts either protect vulnerable people like children owed support or hold wrongdoers accountable.
The United States Bankruptcy Code, specifically 11 U.S.C. § 523, spells out nineteen categories of debts that survive bankruptcy. Some automatically remain your responsibility. Others can be discharged if the creditor doesn’t object. These federal rules apply regardless of whether you file in the Eastern or Western District of Missouri.
Child Support and Alimony
Child support and alimony cannot be discharged in bankruptcy. These debts continue under both Chapter 7 and Chapter 13. The court does not eliminate these obligations. This includes support owed to a spouse, former spouse, child, or government agency.
Some divorce-related debts are treated differently. Certain hold harmless obligations may be dischargeable in Chapter 13. This depends on specific legal conditions. Support obligations always remain.
Student Loans
Student loans are usually not discharged in bankruptcy. You must prove undue hardship to qualify. Courts in Missouri apply a totality of circumstances test. This considers income, expenses, and future ability to pay.
Courts may allow discharge in limited situations. Examples include long-term hardship or limited earning ability. You must file a separate legal action in your case. Recent federal guidance may help in some cases.
Tax Debts
Not all tax debts survive bankruptcy, but many do. Whether you can discharge a tax debt depends on timing requirements and the type of tax involved. Income tax debts can be discharged if they meet all of these conditions under 11 U.S.C. § 523(a)(1):
The tax return was due (including extensions) more than three years before you filed bankruptcy. You actually filed a tax return at least two years before filing bankruptcy. The tax was assessed at least 240 days before you filed bankruptcy. You didn’t commit fraud or willful tax evasion.
These rules get tricky in practice. If the IRS suspended collection activity, the 240-day clock stops running during that time. If you filed your tax return late, the three-year period doesn’t start until you actually filed the return.
Even when income tax debts are old enough to discharge, any tax liens the IRS or state placed on your property survive bankruptcy. The debt may go away, but the lien stays attached to your house or other property.
Criminal Fines and Restitution
If you owe fines, penalties, or restitution to the government for breaking the law, bankruptcy won’t help you. This includes traffic tickets, court costs, criminal fines, and restitution orders. The law treats these differently because they serve a punishment function.
Under 11 U.S.C. § 523(a)(7) and § 523(a)(13), any debt for a fine, penalty, forfeiture, or restitution order payable to a governmental unit survives bankruptcy. In practice, assume that anything the criminal or traffic court ordered you to pay will still be there after your discharge.
DUI-Related Debts
If you caused injury or death while driving under the influence, any debt from that incident cannot be discharged. This applies whether the debt comes from a criminal restitution order or a civil lawsuit judgment. Under 11 U.S.C. § 523(a)(9), debts for death or personal injury caused by operating a motor vehicle while intoxicated are always nondischargeable.
This exception makes no allowances for how much time has passed or whether paying the debt would cause you hardship.
Debts from Fraud and Willful Injury
Some debts are presumed dischargeable unless a creditor objects. These include debts obtained through fraud, debts from willful and malicious injury, and debts from embezzlement or larceny. Under 11 U.S.C. § 523(a)(2), (a)(4), and (a)(6), creditors must file a complaint with the bankruptcy court within 60 days after the first date set for the meeting of creditors to challenge these debts.
Did you max out your credit cards right before filing bankruptcy? That might be fraud. Did you make false statements on a loan application? That debt might survive if the creditor proves you lied. The creditor has to prove their case showing you acted intentionally, not just carelessly.
Even without proving fraud, certain recent credit card charges are presumed nondischargeable. Consumer debts over $800 for luxury goods or services to a single creditor within 90 days before filing are presumed fraudulent. Cash advances over $1,100 from a single creditor within 70 days face the same presumption. These amounts are adjusted periodically for inflation.
How Chapter 13 Handles Nondischargeable Debts
Chapter 13 bankruptcy works differently than Chapter 7 when dealing with debts that can’t be discharged. In Chapter 7, your nondischargeable debts wait while the case proceeds. After you get your discharge in three to six months, you start paying those debts again.
Chapter 13 requires a repayment plan lasting three to five years. You make monthly payments to a trustee who distributes money to your creditors according to your plan. Certain priority debts, including domestic support obligations and recent tax debts, must be paid in full through your plan.
One advantage is that Chapter 13 can discharge certain debts that survive Chapter 7. Some debts from property settlements in divorce cases might be dischargeable in Chapter 13 even though they’d survive Chapter 7.
Unlisted Debts
When you file bankruptcy, you must list all your debts—every single one. If you forget to list a debt or deliberately leave it off, that debt might not be discharged. The law penalizes you for not giving creditors notice of your bankruptcy case.
In many no-asset Chapter 7 cases, unlisted debts may still be discharged, but failing to list debts can create legal risks. In an asset case or a Chapter 13 case, the debt might still be discharged if the creditor wouldn’t have received anything anyway.
The simple solution is to list every debt, even ones you want to keep paying. You can reaffirm secured debts like car loans if you want to keep the property. You can voluntarily repay any discharged debt after bankruptcy if you choose.
Should You Still File Bankruptcy?
Knowing which debts survive bankruptcy changes how you approach your case. If most of your debt is nondischargeable, bankruptcy might not give you enough relief to justify the cost and credit impact. On the other hand, even if significant debts survive, eliminating your credit cards and medical bills through bankruptcy might free up enough income to handle what remains.
Chapter 13 sometimes makes more sense when you have substantial nondischargeable debts. The repayment plan gives you a structured way to catch up on things like back taxes or support arrears while the automatic stay protects you from creditors.
Some people file bankruptcy strategically to deal with overwhelming dischargeable debt, then focus their resources on nondischargeable obligations that were getting lost in the shuffle.
Key Takeaways
- Child support and alimony always survive bankruptcy. These debts protect vulnerable family members and receive the highest priority under bankruptcy law. You cannot discharge domestic support obligations in any chapter of bankruptcy.
- Student loans rarely qualify for discharge. Unless you can prove undue hardship through an adversary proceeding, your student loans will remain after bankruptcy. Missouri’s Eighth Circuit uses a totality of circumstances test that may offer more flexibility than other regions.
- Tax debts follow complex timing rules. Older income tax debts that meet specific age and filing requirements can be discharged, but recent taxes and most other tax obligations survive bankruptcy. Tax liens remain on your property even if the underlying debt is discharged.
- Criminal fines and restitution never go away. Any fines, penalties, or restitution orders from criminal or traffic court will survive your bankruptcy discharge.
- Debts from fraud can be challenged by creditors. Recent luxury purchases on credit cards (over $800 within 90 days or cash advances over $1,100 within 70 days) are presumed nondischargeable. Creditors must file a complaint within 60 days to challenge fraud-based debts.
- Chapter 13 handles nondischargeable debts differently. Priority debts must be paid in full through your Chapter 13 plan, but this structure can help you catch up on obligations while protected from creditors.
- List every debt on your bankruptcy schedules. Failing to list a debt can prevent it from being discharged, even if it would normally qualify for discharge.
Frequently Asked Questions
Can I discharge medical debt in Missouri bankruptcy?
Yes, medical debt is typically fully dischargeable in both Chapter 7 and Chapter 13 bankruptcy. Medical bills don’t fall into any of the nondischargeable categories, so they’re treated like credit card debt and personal loans.
What happens to my car loan in bankruptcy?
Car loans are secured debts, meaning the lender has a lien on your vehicle. The debt itself can be discharged, but the lien survives. If you want to keep your car, you’ll need to keep making payments or reaffirm the debt in Chapter 7. In Chapter 13, you can keep your car by including the payments in your repayment plan.
Do I have to keep paying credit cards I charged up right before filing?
It depends on what you bought and when. Luxury purchases over $800 within 90 days of filing, or cash advances over $1,100 within 70 days, are presumed nondischargeable. The credit card company must object to discharge these debts. Normal charges for necessities generally aren’t a problem.
Can bankruptcy help with unpaid parking tickets?
Probably not. Parking tickets are fines owed to a governmental unit, which means they fall under the exception in 11 U.S.C. § 523(a)(7) and survive bankruptcy.
Will bankruptcy clear old tax liens from my house?
No. While the underlying tax debt might be discharged if it’s old enough and meets all the requirements, tax liens survive bankruptcy. You’d still need to pay off the lien before you could sell the property or refinance.
Can I file bankruptcy if I already owe child support?
Yes, you can file bankruptcy even with child support arrears. The bankruptcy won’t discharge what you owe, but it can eliminate other debts that are draining your resources. This might free up income to catch up on support payments. In Chapter 13, support arrears are priority debts that must be paid in full through your plan.
Contact Us
Figuring out which debts bankruptcy can help you with is just the starting point. Every situation is different. The mix of debts you’re carrying, your income, your assets, and your goals all affect whether bankruptcy makes sense and which chapter gives you the best outcome.
At Roach Bankruptcy Center, LLC, we sit down with people facing tough financial situations every day. We go through your specific debts line by line to show you what bankruptcy can and can’t do for you. Sometimes bankruptcy is exactly the tool you need. Other times, we might suggest different approaches that work better for your circumstances.
You don’t have to face this alone. We’re here to give you straight answers about your options, help you understand the bankruptcy process, and guide you toward a realistic plan for your financial future. The consultation doesn’t commit you to anything—it just gives you the information you need to make the right choice.
Stop wondering whether bankruptcy could help you. Contact Roach Bankruptcy Center, LLC today to schedule your free initial consultation. Let’s figure out together what your fresh start could look like.
