What debts cannot be discharged ?

There is a long list of debts that cannot be discharged.  However, the following types of debts are the ones most likely to be an issue for consumer debtors:

• Student loans:

Educational loans are not dischargeable unless the debtor can show that repayment of the loan would create an undue hardship on the debtor or the debtor’s dependents. The courts have established a three part test that debtors must satisfy in order to be able to discharge student loans. The test is very difficult to meet and very few debtors are given discharges on their student loans.

• Taxes:

In general, debts for taxes that were due over three years before the bankruptcy filing are dischargeable. Debts for taxes due less than three years before the bankruptcy filing and debts for tax years in which a tax return was not filed are not dischargeable. However, there are many factors that must be examined and determining if a tax debt is dischargeable requires careful analysis. In addition, if you were in business and incurred debts for failure to pay certain taxes, such as withholding taxes or sales taxes, these debts are not dischargeable.

• Domestic Support Obligations:

Debts for child support or spousal support resulting from a court order or decree or pursuant to a separation agreement are not dischargeable. In addition, property settlement debts owed to a spouse, former spouse or child of the debtor are not dischargeable in Chapter 7.