Debt Chapter 7 Doesn’t Remove

What debts can not be discharged in a chapter 7 case?

The list can be long, so lets start with the most common ones.

Child support and maintenance (alimony) are not going to be discharged. There is a possibility that even some debt ordered by the court in a divorce might not be discharged as well. That’s a little more complicated and needs to be visited with on a case by case .

It is a common misconception that you can not get rid of Tax debt in a chapter 7.This is not true. Lets discuss.

Probably the major debt people want to get discharged are taxes, whether Federal or State.

You can discharge debts as a consumer( not as a business) as follows

Only income taxes can be discharged. That means no withholding taxes or other taxes.

The taxes due must be for more than 3 years ago running from April 15 of the year after the taxable year. For example. If you owe income taxes from2018, they were due to be filed on April 15, 2019.Since 3 years has not expired, they are not dischargeable until April 15, 2022.

If you filed an extension , or failed to file timely, the 3 years doesn’t run until they are filed. For example. If  you have Taxes you owe from 2010, but you never filed a return, the 3 years doesn’t run even if the debt is over 10 years.

Tax  liens are another situation entirely, and would be discussed on a  case by case .

These rules  to discharge tax debt apply to state taxes as well as federal taxes.

Typically, you can not get rid of fraudulent debt.

Likewise any type of intentional injury can not be discharged. This would include injuries caused by a DUI, or  even a fight.

Fines are also not going away.

And lastly, Student Loans are still keepers, unless you are disabled. Then we can talk, since there are still some rules.