Non-Dischargeable Debts

The following debts cannot be discharged in either Chapter 7 or Chapter 13 Illinois bankruptcies. If you file for Chapter 7, you will still be responsible for repaying these debts after your discharge. If you file for Chapter 13, these debts will have to be paid in full as a part of your plan. If they are not, the balance will remain at the end of your case. Remember that you will also have to continue to pay secured debts (such as a house or car payment) if you intend to keep those secured assets.

Non-dischargeable debts include:

  • Back child support, alimony obligations and other debts dedicated to family support.
  • Debts for personal injury or death caused by driving while intoxicated.
  • Student loans, unless it is an undue hardship for you to repay.
  • Fines and penalties for violating the law, including traffic tickets and criminal restitution.
  • Recent income tax debts (within 3 years) and all other tax debts.
  • Debts you fail to list in your bankruptcy papers, unless the creditor learns of your bankruptcy case.

The following debts may be declared non-dischargeable by a bankruptcy judge in Chapter 7 if the creditor challenges your request to discharge them:

  • Debts you incurred on the basis of fraud or unlawful means.
  • Credit purchases of $1,150 or more for luxury goods or services made within 60 days of filing.
  • Loans or cash advances of $1,150 or more taken within 60 days of filing.
  • Debts from a malicious injury to another person or their property.
  • Debts you owe under a divorce decree or settlement – ask us how this might apply based upon your circumstances.