Bankruptcy does not discharge all types of debt.  In both Chapter 7 and Chapter 13 bankruptcy, there are certain types of debt that will not be discharged or erased.  Let’s begin by looking at debts that are not discharged in a Chapter 13 bankruptcy.

A Chapter 13 discharge affects only those debts allowed for by your bankruptcy plan.  Any debts not specifically addressed in your plan may remain, and you will be required to pay them in full – even after the discharge.  Debts that are not usually discharged under a Chapter 13 bankruptcy include: claims for child support and alimony, educational loans, drunk driving debts, criminal fines, and certain long-term obligations such as home mortgages, that extend beyond the term of the plan.  An experienced bankruptcy attorney can explain which debts are erased in your Chapter 13 bankruptcy and which debts will remain.

Likewise, a Chapter 7 bankruptcy does not discharge every kind of debt.  Typically, intentional acts of wrongdoing, such as fraud, are not dischargeable.  Other types of debts that are not going to be dischargeable are debts that have a very important social or political aspect to them.  These debts usually include taxes, student loans, alimony, spouse support, and child support.  Additionally, a Chapter 7 bankruptcy does not discharge debts associated with a divorce or marital separation agreement (i.e. a property division judgment).

Taxes owed to the United States government, or any state, county, or government agency are not typically dischargeable.  However, income taxes can be discharged if all of the following criteria are met:

1. The taxes are more than three years old at the time the bankruptcy was filed.
2. If your tax return was not filed on time, more than two years must have expired since the return was filed.
3. If there was an assessment, more than 240 days must have expired from the date of the assessment before the bankruptcy was filed.
4. There has been no fraud.

For more information about what debts will remain after your bankruptcy, consult with an experienced bankruptcy attorney.