Source: https://www.andresmontejolaw.com/the-chapter-7-discharge-what-debts-are-not-eliminated/
Timestamp: 2019-04-26 13:53:05+00:00

Document:
Many people are familiar with the most common categories of debts that may be discharged in Chapter 7 bankruptcy. These include credit card account balances, medical bills, old utility and phone bills, and unsecured personal loans. What are not so well known, however, are the types of debts not eligible for discharge in Chapter 7 bankruptcy.
The key to understanding those so called ‘nondischargeable’ debts is a familiarity with the section of the Bankruptcy Code that sets forth a list of ‘exceptions to discharge’. The logic of the code is that if the debt does not fall into one of these categories, it is presumed to be dischargeable unless contested by a creditor. That is to say, a creditor may file an objection to the dischargeability of a particular debt under this section, in which case the court will decide the issue.
(II) the term “luxury goods or services” does not include goods or services reasonably necessary for the support or maintenance of the debtor or a dependent of the debtor.
§ 523(a)(1) and (14): Most taxes, along with debts incurred to pay them. Simple enough.
§ 523(a)(2)(A) and (B): Debts where the money or property was obtained by fraud – no surprise here.
§ 523(a)(2)(C)(i)(I) and (II): Be warned – don’t buy any large luxury items on credit right before you file; likewise, don’t take any large cash advances. If you’ve already done so, then you’d better wait awhile (at a minimum you should wait the 90/70 day lookback period) before you file your Chapter 7 bankruptcy petition.
§ 523(a)(5) and (15): The vast majority of “family court” obligations, with only very narrow exceptions.
§ 523(a)(8): Student loans, unless the debtor can make a showing of “undue hardship.” Courts have generally interpreted ‘undue hardship’ very strictly.
§ 523(a)(9): Most commonly, a debt arising from injuries from a car accident caused by the debtor while DUI.
Again, there are several more categories of nondischargeable debts beyond the ones listed above, but these are the key ones. Before an informed decision can be made as to whether a bankruptcy makes sense for a prospective filer, the debtor must first fully understand the benefits – along with any limits to those benefits – that a bankruptcy filing will afford in his or her specific circumstances. And that means knowing, in advance, exactly what debts will or will not be discharged. Discuss the matter carefully with your bankruptcy attorney – it’s too important an issue to leave to chance.

References: § 523

§ 523

§ 523

§ 523

§ 523

§ 523