What Debts Cannot Be Discharged in Bankruptcy in Texas?

Bankruptcy can eliminate a lot of debt — but not all of it. Before filing, it is important to understand which debts survive a bankruptcy discharge and which ones are wiped out.

Debts Typically Discharged in Chapter 7

These are generally eliminated: credit card balances, medical bills, personal loans, utility bills, old lease obligations, civil court judgments, and deficiency balances from repossessed vehicles or foreclosed property. For most people, the bulk of what they owe falls here.

Debts That Survive Bankruptcy

Student loans survive in almost all cases. There is a narrow undue hardship exception, but it is genuinely difficult to qualify for.

Child support and alimony are non-dischargeable. Family support obligations must be paid in full.

Most income taxes cannot be discharged, though older tax debts — generally more than three years old that were timely filed — can sometimes qualify under specific circumstances.

Debts from fraud are not dischargeable. If a creditor proves you obtained money through false pretenses, that debt survives.

Criminal fines and restitution are not dischargeable.

Recent luxury purchases and large cash advances made shortly before filing may be presumed non-dischargeable and challenged by creditors.

Why This Matters Before You File

If most of your debt is student loans, bankruptcy may provide limited relief. If student loans are a small fraction and the rest is credit cards and medical bills, discharge can still be enormously valuable. Call my Houston office at (713) 366-1288 for a free consultation. We will go through your debt line by line.