Debts that are never dischargeable

Fines, Restitution and Penalties

Government imposed money punishments cannot be discharged in a bankruptcy. Examples are:

  1. Fines imposed for agency regulation violations
  2. Restitution ordered to be paid to victims of crimes in federal cases
  3. Fines for misdemeanors and felonies
  4. Charges for time spent in jail

Domestic Support Obligations

Debts such as alimony and child support are not dischargeable in bankruptcy. Also agreements between spouses for support may render the contractual support obligation nondischargeable even though there has not been a court order.

Some Tax Debt

Income taxes may be dischargeable if certain requirements apply.Income taxes which do not satisfy these requirements are nondischargeable. If you did not file a tax return your income taxes are nondischargeable. Property taxes are nondischargeable if they became due less a year before you filed for bankruptcy. Even though you do not owe the property taxes if you file bankruptcy the taxes will stay on the property as a lien. Before the property can be sold the taxes have to be paid and the taxing authority has the right to foreclose on the property for the unpaid property taxes. Other nondischargeable taxes are excise taxes, payroll taxes, sales and use taxes.

DUI Debt

Debts resulting from personal injury claims because of drunk driving are nondischargeable. This does not apply to damages caused to property by an intoxicated driver.

401(k) loan debt

Debt you incurred from taking out a loan from a qualified retirement plan are not dischargeable in bankruptcy. The reason is that only debts owed to another person are dischargeable in chapter 7 bankruptcy. If you cannot repay the money you may want to look at your options under a chapter 13 bankruptcy.

Certain HOA dues

Home Association dues that became due after you file for bankruptcy are not dischargeable.

Debts from Previous Bankruptcy

If a previous bankruptcy case was dismissed because of fraud or other fraudulent acts any debts that may have been dischargeable in the previous case are not dischargeable in the current case.