3. What debts cannot be discharged in a Chapter 7 bankruptcy?

These items cannot usually be discharged or eliminated in a Chapter 7 bankruptcy:

  • Taxes for a tax period less than three years old
  • Debts incurred by false statements when the credit was obtained
  • Purchases incurred or debts incurred in contemplation of bankruptcy (debts incurred with no intent of paying the creditor)
  • Debts owed to a single creditor for more than $550 for luxury goods or services, including cash advances purchased within 90 days before filing
  • Purchases of non-luxury items aggregating more than $825 on or within 70 days before filing
  • Debts for alimony or child support or debts resulting from a marital property division
  • Student loans (unless a showing of undue hardship can be made)
  • Debts arising from a judgement where liability was incurred due to the debtor’s operation of a motor vehicle while intoxicated

This list is not exhaustive.  Speak to an attorney if you have questions about whether a debt can be discharged.