What Debts Are Not Eliminated in Bankruptcy?

 Posted on June 09, 2026 in Bankruptcy

Bankruptcy can give you a real fresh start when debt has taken over your life, but it does not erase everything you owe. Some debts survive bankruptcy no matter which type you file. If you are wondering whether bankruptcy will actually help your situation in 2026, the answer depends on what kinds of debt you have. A Kane County, IL bankruptcy lawyer can help you figure out which of your debts can be eliminated, and which ones will still be there after your case closes.

What Debts Cannot Be Discharged in Bankruptcy?

Discharged means legally eliminated. Under 11 U.S.C. Section 523 of the U.S. Bankruptcy Code, certain debts cannot be wiped out no matter what. Here is what typically survives a bankruptcy filing:

• Student loans, unless you can prove that repaying them would cause you serious financial hardship

• Most income taxes, especially those you owe from recent years

• Child support and alimony payments

• Debts from injuries you caused while driving drunk

• Criminal fines, restitution, and court penalties

• Money you borrowed using fraud or lies

• Debts you intentionally left off your bankruptcy paperwork

These are some of the most common debts that survive bankruptcy.

Can Student Loans Ever Be Discharged in Bankruptcy?

It is possible to discharge student loans through bankruptcy, but it’s still difficult to do so in most cases. Under 11 U.S.C. Section 523(a)(8), student loans can only be eliminated if paying them back would cause you an undue hardship. Courts have traditionally applied something called the Brunner test when evaluating undue hardship. To pass that test, you have to show three things: you cannot cover basic living expenses while making loan payments, your financial situation is not likely to improve, and you have genuinely tried to repay the debt.

Meeting this standard can still be challenging, although recent policy changes have made student loan discharge more attainable in some cases. If student loans are your biggest concern, it may be worth looking into income-driven repayment plans before deciding that bankruptcy is the answer.

Are Back Taxes Dischargeable in Bankruptcy?

Some tax debt can actually be eliminated in bankruptcy, which comes as a surprise to a lot of people. Whether it qualifies depends on the age of the debt and whether you filed your returns on time.

Income tax debt may be dischargeable if the return was due at least three years before you filed for bankruptcy, you filed the return at least two years before your bankruptcy case, and the IRS assessed the tax at least 240 days before you filed. Payroll taxes and fraud penalties rarely qualify. Tax debt is one of the more complicated areas of bankruptcy law, so getting specific legal advice before assuming anything is important.

What Happens to Child Support and Alimony in Bankruptcy?

Child support and alimony are fully protected under 11 U.S.C. Section 523(a)(5). Bankruptcy will not reduce, pause, or erase what you owe in support payments. If you are already behind, bankruptcy will not stop efforts to collect those past-due amounts either.

This is important to know before you file. If support payments are your main financial burden, bankruptcy may not give you the relief you are looking for, and a different approach may make more sense.

What if a Divorce Order Requires Me to Pay Other Debts?

If a divorce agreement requires you to pay something that is not classified as support, like a joint credit card, these are generally not dischargeable in Chapter 7, but may be discharged upon completion of a Chapter 13 plan. Whether something is considered support or a property-settlement debt can make a significant difference, and it is worth reviewing with an attorney before you file.

Can Debts from Fraud Be Wiped Out in Bankruptcy?

Under 11 U.S.C. Section 523(a)(2), if a creditor can show that you got money or credit through fraud or intentional misrepresentation, that debt will not be eliminated. The creditor has to bring a complaint in bankruptcy court to challenge it. If they win, you will still owe that debt after your case is over.

This does not apply to ordinary financial mistakes. It applies to situations where a court finds that you deliberately misled someone to get money or credit.

Contact Our McHenry County, IL Bankruptcy Lawyers Today

If debt feels impossible to get out from under, you deserve straight answers about what bankruptcy can and cannot do for you. Our attorney understands how much is riding on this decision, and she is committed to giving every client honest, personalized guidance based on their specific situation. She takes the time to go through your full financial picture, explain your real options, and help you find the path that fits your life. If you are ready to understand whether bankruptcy is right for you, contact a Kane County, IL bankruptcy attorney at Thomas Law Office by calling 847-426-7990 today.