You walk out of the bankruptcy court feeling lighter than you have in years. The weight of overwhelming debt finally lifted. But then reality sets in when you receive a bill for child support, a notice from the IRS, or a student loan statement in the mail. Wait, you thought bankruptcy eliminated everything?
Filing for bankruptcy in Florida can provide tremendous relief from crushing debt, but not all debts disappear through the bankruptcy process. Some financial obligations survive the discharge and remain your responsibility long after your case closes. Understanding which debts you cannot eliminate in Chapter 7 or Chapter 13 bankruptcy can help you make informed decisions about your financial future and avoid unpleasant surprises after your case concludes.
At Tejes Law, PLLC, we help Orlando residents understand exactly which debts will remain after bankruptcy and provide guidance on managing them effectively. This knowledge allows you to plan accordingly and set realistic expectations about your fresh start and your ongoing financial obligations.
What Does It Mean When a Debt Is Non-Dischargeable?
When you file for bankruptcy, you receive a discharge that releases you from personal liability for certain debts. However, non-dischargeable debts in bankruptcy survive the process, and creditors retain their legal right to collect from you even after your case concludes.
The federal Bankruptcy Code, specifically 11 U.S.C. § 523, establishes which debts cannot be discharged. Florida bankruptcy courts follow these federal guidelines when determining what debts survive in Florida bankruptcy proceedings.
Debts That Are Never Discharged in Bankruptcy
Certain debts remain your responsibility regardless of which bankruptcy chapter you file or what your financial circumstances look like. These debts are automatically non-dischargeable.
Domestic Support Obligations
Child support and alimony are debts that cannot be eliminated in Chapter 7 or Chapter 13 bankruptcy under 11 U.S.C. § 523(a)(5). You must continue making all required support payments throughout the bankruptcy process. In Chapter 13, your repayment plan must include full payment of any overdue support amounts. You also remain responsible for current support payments directly to the recipient during your case.
Most Student Loans
Student loans are among the most difficult debts to discharge in bankruptcy under 11 U.S.C. § 523(a)(8). Government-funded or nonprofit educational loans cannot be discharged unless you prove undue hardship through a separate court proceeding.
To qualify, you must show that repayment would prevent a minimal standard of living, that the hardship will continue, and that you made good faith efforts to repay. Florida courts apply strict standards, making student loan discharge rare..
Tax Debts
Not all tax debts can be discharged in bankruptcy, and the rules depend on the type and age of the debt under 11 U.S.C. § 523(a)(1). Income taxes may survive if the return was due within three years of filing, involved fraud, or reflected willful tax evasion.
Sales taxes, payroll taxes, trust fund taxes, and property taxes assessed within one year before filing are never dischargeable. A bankruptcy attorney can review your specific tax situation to determine which of your tax debts, if any, may qualify for discharge.
Government Fines and Penalties
Criminal restitution orders, court fines, and penalties owed to government agencies cannot be discharged under 11 U.S.C. § 523(a)(7). This includes criminal restitution to victims, fines imposed for criminal violations, penalties for regulatory violations, traffic tickets, and parking violations.
Debts from Driving While Intoxicated
If you caused personal injury or death while operating a vehicle under the influence of alcohol or drugs, any resulting debt is non-dischargeable under 11 U.S.C. § 523(a)(9). This applies to judgments, settlements, or damages owed to victims and extends to operating vehicles, boats, and aircraft while intoxicated.
Debts That May Be Non-Dischargeable if a Creditor Objects
Some debts are presumed dischargeable unless a creditor takes action to challenge the discharge. The creditor must file an adversary proceeding in bankruptcy court and prove why the debt should survive your bankruptcy.
Debts Obtained Through Fraud
If you obtained money, property, or services through false pretenses or fraud, the creditor can object to discharge under 11 U.S.C. § 523(a)(2)(A). The creditor must prove you made a false representation, you intended to deceive them, they reasonably relied on your statement, and they suffered damages.
Common examples include lying on credit applications, using someone else’s identity to obtain credit, or making false promises about repayment. Credit card purchases for luxury goods or services within 90 days of filing, or cash advances within 70 days of filing, are presumed fraudulent if they exceed the Bankruptcy Code’s inflation-adjusted thresholds. These threshold amounts adjust every three years under federal law
Debts from Willful and Malicious Injury
Debts arising from willful and malicious injury to another person or their property may be non-dischargeable under 11 U.S.C. § 523(a)(6). The injury must be intentional, not merely negligent. The creditor must prove you deliberately intended to cause harm or knew your actions were substantially certain to cause injury.
Debts from Breach of Fiduciary Duty
If you held a fiduciary position and breached that duty through fraud or defalcation, or if you committed embezzlement or larceny, the resulting debt is non-dischargeable under 11 U.S.C. § 523(a)(4). This applies to trustees, executors, guardians, or anyone in a position of trust who misappropriates funds or property.
Divorce-Related Debts
Debts arising from divorce present special challenges in bankruptcy. While support obligations are always non-dischargeable, other divorce-related debts follow different rules under 11 U.S.C. § 523(a)(15).
If your divorce decree requires you to pay certain debts as part of property division, these obligations may be non-dischargeable. Your former spouse can object to discharge if discharging the debt would harm them more than it would benefit you, or if you have the ability to pay from post-bankruptcy income.
How Non-Dischargeable Debts Work in Chapter 7 vs Chapter 13
The impact of non-dischargeable debts differs depending on which bankruptcy chapter you file.
In Chapter 7, you receive your discharge within a few months, but non-dischargeable debts remain your responsibility. Creditors can immediately resume collection efforts on these debts once your bankruptcy case closes.
Chapter 13 requires you to propose a three-to-five-year repayment plan. Your plan must provide for full payment of certain non-dischargeable debts, particularly domestic support obligations and some tax debts. If your plan does not pay non-dischargeable debts in full, you remain responsible for any remaining balance after your case concludes.
Chapter 13 also discharges some debts that would be non-dischargeable in Chapter 7, such as certain property settlement debts from divorce. This broader discharge makes Chapter 13 attractive for some filers with these types of obligations.
Debts Not Listed in Your Bankruptcy Petition
If you forget to list a debt in your bankruptcy petition, that debt may be non-dischargeable under 11 U.S.C. § 523(a)(3). The creditor must not have had notice of your bankruptcy in time to file a proof of claim.
Always work with your Orlando bankruptcy attorney to ensure your petition includes all creditors and debts.
Condominium and Homeowners Association Fees
Under 11 U.S.C. § 523(a)(16), condominium and homeowners association fees that become due after you file bankruptcy cannot be discharged if you maintain ownership of the property. Pre-bankruptcy fees may be dischargeable if you surrender the property, but if you keep it, you must pay all post-filing assessments.
What Can You Do About Non-Dischargeable Debts?
While bankruptcy cannot eliminate all debts, it can still provide significant relief by wiping out many obligations and freeing up funds to address those that remain. After filing, focusing on a realistic budget and prioritizing non-dischargeable debts can help you manage what’s left and avoid additional penalties.
- Prioritize non-dischargeable debts — Place child support, certain taxes, and other surviving debts at the top of your payment list to avoid penalties, interest, and enforcement actions.
- Contact creditors directly — Many government agencies and creditors will work with you to establish manageable payment plans that reduce stress and make balances easier to handle.
- Consider Chapter 13 for large non-dischargeable debts — This option creates a 3-5 year repayment plan that allows you to catch up on overdue amounts while protecting you from wage garnishment and collection efforts.
- Bankruptcy still provides relief — Even with remaining debts, filing can give you breathing room and a clearer financial path forward.
Why Working With a Bankruptcy Attorney Matters
Dealing with non-dischargeable debts requires detailed knowledge of federal bankruptcy law and how Florida courts interpret these provisions. An attorney can review your debts before you file and help you set realistic expectations about what will remain after your case.
Your lawyer can also identify opportunities to structure your bankruptcy to your advantage, such as choosing between Chapter 7 and Chapter 13 based on your non-dischargeable obligations.
At Tejes Law, PLLC, we evaluate every client’s situation individually. We explain clearly which debts will remain after bankruptcy and help you develop strategies for managing these obligations while taking full advantage of the relief bankruptcy offers.
Key Takeaways
Filing for bankruptcy in Florida provides powerful debt relief, but some obligations always remain your responsibility.
- Domestic support obligations, most student loans, recent taxes, government fines, and drunk driving debts are never dischargeable
- Some debts become non-dischargeable only if creditors file objections proving fraud, willful injury, or breach of fiduciary duty
- Non-dischargeable debts in Chapter 13 may be paid through your repayment plan, while they remain fully your responsibility in Chapter 7
- Working with a bankruptcy attorney ensures you understand which obligations will survive and how to manage them effectively
Frequently Asked Questions
Can I discharge credit card debt from purchases made shortly before filing bankruptcy?
Most credit card debt is dischargeable, but purchases exceeding $800 for luxury items within 90 days of filing may be challenged. Regular purchases for necessities typically remain dischargeable.
What happens if I cannot afford to pay my non-dischargeable debts after bankruptcy?
Contact your creditors immediately to discuss payment arrangements. For tax debts, the IRS offers installment agreements. For support obligations, you may need to seek a modification through family court.
Are medical debts dischargeable in Florida bankruptcy?
Yes, medical debts are generally fully dischargeable in both Chapter 7 and Chapter 13 bankruptcy.
What divorce debts can be discharged in bankruptcy?
Support obligations are never dischargeable. Property settlement debts may be dischargeable in Chapter 13 bankruptcy under certain circumstances.
Contact Tejes Law, PLLC
At Tejes Law, PLLC, we help Orlando residents facing overwhelming debt. Not every situation requires bankruptcy, and not every debt disappears through it. We provide honest assessments of what bankruptcy can and cannot do for your specific circumstances.
Our team reviews your debts to identify which obligations will survive bankruptcy. We help you develop a strategy that provides maximum relief while managing the debts that remain. We handle both Chapter 7 and Chapter 13 cases throughout Orlando and surrounding Central Florida communities.
Whether you have questions about specific debts or need help deciding between bankruptcy options, we are here to help. Our Florida bankruptcy lawyers work with you to find solutions that fit your situation and goals. Contact us today to schedule a free consultation and take the first step toward a fresh financial start.