The following table contains a summary of the debts that are non-dischargeable in Chapter 7, 11 & 13 cases, and the differences in the discharge granted under the different chapters.
Type of Debt | Is the debt dischargeable in bankruptcy? Yes or No | |
Ch. 7 or 11 | Ch. 13 | |
Child Support and Alimony Obligations [523(a)(5) / 1328(a)(2)] | No | No |
Civil Fines & Penalties [523(a)(7)] | No | Yes |
Criminal Fines & Restitution [523(a)(7) & (14) / 1328(a)(3)] | No | No |
Divorce Decree Debts [523(a)(15)] | No | Yes |
Drunk Drivers Causing Death or Injury [523(a)(9) / 1328(a)(2)] | No | No |
Embezzlement, Theft or Breach of Fiduciary Duty [523(a)(4) / 1328(a)(2)] | No* | No * |
Fraud and False Financial Statements [523(a)(2) / 1328(a)(2)] | No* | No * |
Student Loans [523(a)(8) / 1328(a)(2)] | No | No |
● Less than 3 Years Old or Assessed Within 240 Days of BK Filing [507(a)(8)(A)(i) & (ii), 523(a)(1)(A)] | No | Yes ** |
● Required Return Was Never Filed [523(a)(1)(B)(i) / 1328(a)(2)] | No | No |
● Tax Fraud and Willful Evasion [523(a)(1)(C) / 1328(a)(2)] | No | No |
● Employment / Trust Fund Taxes [507(a)(8)(C), 523(a)(1)(A) / 1328(a)(2)] | No | No |
Debts Incurred to Pay Non-Dischargeable Federal, State and Local Taxes [523(a)(14)] | No | Yes |
Securities Law Violations or Securities Fraud in Judgment, Order or Settlement [523(a)(19)] | No | Yes |
Unlisted Debts [523(a)(3 / 1328(a)(2)] | No | No |
Denial of Discharge in Prior Case [523(a)(10)] | No | Yes |
● Persons [523(a)(6), 523(c)(1) / 1328(a)(4) / FRBP 4007(c)] | No * | No * |
● Property [523(a)(6), 523(c)(1) / FRBP 4007(c)] | No * | Yes |
* These debts require the creditor to file a lawsuit in bankruptcy court to establish that the debt exists and that it is non-dischargeable. All other debts are automatically non-dischargeable. **Tax debts less than 3 years old are dischargeable in Ch. 13. However, the issue is never reached because these type of debts are classified as "priority debts" under § 507(a)(8), which must be paid in full under the terms of any bankruptcy plan. § 1322(a)(2). As a practical matter, the discharge only applies to the interest and penalties that accrue on the tax debt under non-bankruptcy law during the time that the Ch. 13 case is pending. | ||
