In a Chapter 13 bankruptcy, what obligations aren’t discharged?
June 29, 2022
By Diane Drain Attorney & Retired Law Professor
Recognize that the law in this area is always changing. Depending on your circumstances, the debts listed here may or may not be discharged. Furthermore, a chapter 13 bankruptcy will discharge some debts that would not be discharged in a chapter 7 bankruptcy.
In most cases, if your bankruptcy discharge is granted, all of your debts will be discharged, with the exception of the following list, which is simply an outline of the majority of debts that are not discharged by operation of law or by a court order:
- Certain taxes, including trust fund taxes. But these are normally paid as part of the chapter 13 plan.
- If the bankruptcy court so rules, debts for obtaining money, property, services, or an extension, renewal, or refinancing of credit by means of false pretenses, fraud, or a false financial statement used with intent to deceive.
- Debts not listed in the bankruptcy papers, unless the creditor had knowledge of the case in time to file a claim.
- Debts for domestic support obligations (alimony, maintenance or support).
- Interest on non-dischargeable debts.
- If the bankruptcy court so rules, debts for intentional injury.
- Debts for certain fines and penalties payable to governmental units.
- Debts for student loans, unless not discharging the debt would impose an severe undue hardship. This undue hardship must be properly plead to the Court and the judge will decide based on your unique situation. This is a very difficult burden for the debtor to prove.
- Debts that were or could have been listed in a prior bankruptcy case in which the debtor either waived their discharge or the discharge was denied.
- Debt for personal injury judgments against you resulting from car accidents in which the debtor was a drunk driver.
- Post-petition homeowner’s association fees (but this issue is disputed).
About the Author: Diane Drain
Diane is a well respected Arizona bankruptcy and foreclosure attorney. As a retired law professor, she believes in offering everyone, not just her clients, advice about bankruptcy and Arizona foreclosure laws. Diane is also a mentor to hundreds of Arizona attorneys.
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