## Debts that survive bankruptcy in New York Bankruptcy's main benefit is the **discharge** — wiping out personal liability for most debts. But Congress and bankruptcy courts have carved out exceptions. Understanding what doesn't discharge is critical to deciding whether bankruptcy will actually solve your problem. ### New York bankruptcy court U.S. Bankruptcy Courts for the Southern, Eastern, Northern, and Western Districts of New York. ## Categories that DON'T discharge **1. Domestic support obligations** (11 U.S.C. § 523(a)(5)): - Child support - Alimony / spousal support - Domestic-support arrears **2. Most taxes** (11 U.S.C. § 523(a)(1) and § 507(a)(8)): - Recent income taxes (within 3 years of filing) - Tax liens - Trust-fund taxes (employer withholding) - Most state and federal taxes recently assessed - Some older taxes may discharge — strict requirements (timely filed return, due 3+ years before filing, assessed 240+ days before filing, no fraud) **3. Student loans** (11 U.S.C. § 523(a)(8)): - Federal student loans (Direct, FFEL, Perkins, Stafford, Plus) - Most private student loans - Discharged ONLY upon showing **"undue hardship"** — Brunner test (income/expense, persistence, good faith) - Recent reforms have made discharge somewhat easier in practice (DOJ + ED Guidance, 2022) **4. Debts incurred by fraud** (11 U.S.C. § 523(a)(2), (4), (6)): - Money obtained by false pretenses, false representation, fraud - Fraud / defalcation while acting in fiduciary capacity - Embezzlement, larceny - Willful and malicious injury (intentional torts) **5. Criminal restitution and fines** (§ 523(a)(7)): - Restitution ordered in criminal cases - Fines, penalties, forfeitures owed to government - Civil penalties for criminal conduct **6. Drunk driving / DUI debts** (§ 523(a)(9)): - Personal-injury debts caused by intoxicated driving - Property damage from intoxicated driving **7. Domestic-relations property settlements** (§ 523(a)(15)): - Non-support obligations from divorce or separation agreements (Chapter 7) - These DO discharge in Chapter 13 (one Chapter 13 advantage) **8. Debts not listed in the bankruptcy schedules** (§ 523(a)(3)): - Creditor wasn't given notice in time to file proof of claim - Common when debtor doesn't list a creditor **9. Government-related debts:** - Court-appointed attorney fees in some cases - Health Education Assistance Loans (HEAL) - Some federal-employee benefit overpayments **10. Personal-injury debts from condo / cooperative fees** post-petition (§ 523(a)(16)) **11. Pension / retirement loans** taken from your own retirement account (§ 523(a)(18)) **12. Civil judgments for securities fraud / SOX violations** (§ 523(a)(19)) ## Common surprises - **"I'll discharge my taxes"** — usually no, especially recent ones - **"Bankruptcy fixes student loans"** — usually no without undue-hardship adversary proceeding - **"Child support arrears go away"** — never - **"DUI civil judgments discharge"** — no - **"Criminal restitution discharges"** — no ## Chapter 7 vs Chapter 13 differences **Chapter 13 has a SLIGHTLY broader discharge:** - Discharges domestic-relations property settlements (under § 523(a)(15)) - Discharges criminal-case restitution in specific narrow circumstances - Discharges some debts arising from breach of fiduciary duty (in narrow circumstances) BUT — most major exceptions (taxes, support, student loans, fraud, restitution) survive both. ## How creditors object to discharge Even debts that COULD discharge can be excepted if a creditor files an **adversary proceeding**: - Within **60 days** after the § 341 meeting (creditors meeting) - Showing fraud, false representation, or other misconduct - Burden on creditor to prove - Common for: credit cards used shortly before filing (fraud presumption applies for luxury purchases over $800 within 90 days, cash advances over $1,100 within 70 days) ## Denial of discharge entirely Beyond debt-specific exceptions, a debtor can be **denied discharge entirely** under § 727: - Concealing or transferring assets to defraud creditors - False oath or account - Failing to maintain books and records - Refusing to obey court orders - Failing to explain loss of assets - Filing within 8 years of prior Chapter 7 discharge - Filing within 6 years of prior Chapter 13 discharge (with limited exceptions) Denial of discharge means NONE of your debts get discharged — far worse than just having one debt excepted. ## Strategic considerations Before filing, calculate: - **What % of your debt is non-dischargeable?** If it's most of it, bankruptcy may not be worth it. - **Are there fraud-based debts** you can't disclose? Don't try to hide them. - **Are taxes recent?** Wait until they age into dischargeability if possible. - **Is student-loan discharge needed?** Adversary proceeding adds time and cost. - **Will a prior bankruptcy bar this one?** Time the filing carefully. ## What you should do Discharge analysis is one of the most important pre-filing tasks. New York bankruptcy attorneys can run a clean analysis of which of your debts will and won't discharge — typically as part of a free initial consultation. If most of your debt is non-dischargeable, alternatives like installment payment plans, debt settlement, or non-bankruptcy negotiations may serve you better. --- *This guide is general information about federal bankruptcy law as of early 2026 and is not legal advice. Discharge exceptions are detailed and case-by-case. Talk to a licensed New York bankruptcy attorney about your specific situation.*