What Debts Are Nondischargeable in Bankruptcy?

While Chapter 7 bankruptcy is very beneficial as it discharges certain debt, mainly unsecured debt, it has limitations. Certain debts are generally considered nondischargeable, meaning creditors can still seek to collect on them. If you have questions about which debt you can or cannot discharge as well as other bankruptcy-related matters, reach out to the Minnesota bankruptcy law firm of Prescott Pearson & Tande, PA.

Prescott Pearson & Tande, PA has been helping individuals, businesses and families throughout Minnesota with bankruptcy-related matters for more than three decades. We have handled over 70,000 bankruptcy cases in Minnesota. Because of our sole focus on bankruptcy, we are able to provide effective solutions along with catered, personalized legal representation.

Discuss your debt situation in a free, confidential consultation. Our attorneys are compassionate to your concerns and are ready to start helping you toward financial freedom.

What Are Nondischargeable Debts?

Chapter 7 bankruptcy allows debtors to get certain debts discharged, meaning they are wiped out. These debts include credit card debt, medical bills and car loans other nonsecured debts, or secured debts like car loans if you want to give up the car because it is no longer affordable or is now worth much less than you owe. However, there are debts that cannot be discharged and are considered "nondischargeable."

Debts that cannot generally be discharged:

  • Child support
  • Spousal maintenance/alimony
  • Taxes due less than three years prior to bankruptcy filing
  • Student loans
  • Debt incurred through fraud (e.g. charging up debt on credit cards prior to filing)
  • Liability created through willful and malicious acts directed to cause injury
  • Debt that you are ordered to pay through a divorce decree
  • 401(k) loans

There are many rules and cases that have been decided by the courts that govern the dischargeability of debt in a bankruptcy. Every circumstance is different and warrants a thorough legal analysis. You need a competent attorney to guide you through those issues to determine if your debts will be discharged in bankruptcy.

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Consultations are free at Prescott Pearson & Tande, PA Call or email us today to learn more about your debt relief options, including Chapter 7 and Chapter 13. Our bankruptcy lawyers offer quality services at competitive rates and effective representation statewide.

We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.