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The General Rule and Its Exceptions
A Chapter 7 discharge releases the debtor from personal liability for most unsecured debts — but not all of them. According to the U.S. Courts (uscourts.gov), the Bankruptcy Code carves out specific categories that generally survive bankruptcy. Knowing which side of that line your debts fall on is the difference between a meaningful fresh start and a discharge that leaves your hardest obligations untouched. People's Justice is not a law firm and does not provide legal advice; what follows is general information about the categories the courts describe.
Debts Chapter 7 Typically Discharges
Most unsecured consumer debts are dischargeable. These commonly include credit card balances, medical bills, personal loans, most older income tax debt that meets the Code's timing tests, deficiency balances after a repossession, and many civil judgments not based on fraud. For these obligations, the discharge wipes out the debtor's personal liability, and creditors are permanently barred from collecting.
Debts That Generally Survive Bankruptcy
Most recent taxes
Per uscourts.gov, most recent tax debts are nondischargeable. Some older income taxes can be discharged if they satisfy the Code's strict timing and filing requirements, but recent taxes, trust-fund taxes, and similar obligations generally survive.
Domestic support obligations
Child support and alimony — the Code's 'domestic support obligations' — are not dischargeable in Chapter 7 (uscourts.gov). These obligations remain fully owed after the case closes.
Most student loans
Most student loans survive a standard Chapter 7 discharge. The exception, per uscourts.gov, is where the borrower obtains an 'undue hardship' determination — and that requires filing a separate adversary proceeding within the bankruptcy case, not the ordinary discharge. Student-loan discharge in bankruptcy is its own distinct process with its own legal standard.
Debts from fraud
Debts arising from fraud, false representations, or willful and malicious injury are generally nondischargeable (uscourts.gov). A creditor may have to raise the issue in the case, but obligations rooted in fraud are not the fresh-start debts Chapter 7 is designed to clear.
Secured Debts Are Different
Discharge eliminates personal liability, but it does not automatically remove a lien. For secured debts — a mortgage on your home or a loan on your car — the lender's lien on the collateral can survive the discharge. In practical terms, that means you can walk away from the debt by surrendering the property, but keeping the house or car generally means continuing to pay. This is why 'what gets discharged' and 'what you keep' are two different questions.
Whether a particular debt — especially a tax or a secured obligation — is dischargeable in your case is a fact-specific legal determination. People's Justice is not a law firm and does not provide legal advice; we are not a government agency. We can connect you with a licensed attorney to analyze which of your debts would actually be discharged.
Related Pages
The 341 Meeting and the Trustee
The 341 meeting of creditors is run by your trustee — not a judge — and is typically held 20 to 40 days after filing (uscourts.gov). The trustee places you under oath and asks about your petition and finances. Most consumer meetings are short, and creditors rarely attend. This is general information, not legal advice.
Exemptions and the 730-Day Rule
Exemptions decide what property you keep in Chapter 7. The 730-day domicile rule (§522(b)(3)) determines which state's exemptions apply. Texas and Florida offer an unlimited homestead exemption (with acreage and time caveats); California debtors choose System 1 (CCP §704) or System 2 (CCP §703). This is general information, not legal advice.
Life After Chapter 7: Rebuilding Credit
After discharge — typically about 90 to 100 days after filing for a no-asset case (uscourts.gov) — the automatic stay ends and the fresh start begins. A Chapter 7 discharge is available once every 8 years (uscourts.gov), and a filing affects credit for years. This is general information, not legal advice.
The Means Test, Explained
The means test compares your 6-month average gross household income to your state's median for your household size (Form 122A-1; U.S. Trustee). Below median means Chapter 7 is generally available; above median triggers the longer Form 122A-2 calculation. Median tables are effective April 1, 2026 (UST). This is general information, not legal advice.
Chapter 7 Bankruptcy Lawsuit
Chapter 7 bankruptcy is a court-supervised process under the U.S. Bankruptcy Code that can discharge most unsecured debts. The U.S. Trustee's means test (Form 122A-1) compares your 6-month average gross income to your state's median family income for your household size; the filing fee is $338 (cacb.uscourts.gov). A trustee — not a judge — administers the case and holds the 341 meeting of creditors 20 to 40 days after filing. Exemptions, governed by the 730-day domicile rule under §522(b)(3), determine which property is protected. Most no-asset cases reach discharge in about 90 to 100 days, and a debtor can receive a Chapter 7 discharge once every 8 years (uscourts.gov). People's Justice is not a law firm and does not provide legal advice; we connect you with licensed attorneys.
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