Nondischargeable debts can be defined as any type of debt that cannot be resolved via a bankruptcy proceeding. Debts that are non-dischargeable according to federal statute include the following:

  1. Taxes that are entitled to priority, including any debt incurred to pay the tax.
  2. Debts where money, property or services were obtained by false pretenses, fraud or false financial statement.
  3. A debt owed to a single creditor for luxury goods or services that aggregate more than $600 incurred by the debtor within 90 days before the order for relief, or cash advances that are extensions of credit in excess of $875 incurred by the debtor within 70 days the order of relief.
  4. A debt that is not listed on the schedule of liabilities in time to permit a timely filing of a proof of claim, unless the creditor had actual knowledge of the case in time for such filing.
  5. A debt arising from fraud, embezzlement or larceny while acting in a fiduciary capacity.
  6. Domestic support obligations.
  7. Debt arising from the debtor’s willful injury to a person or property of another.
  8. Debt for a fine or penalty payable to a governmental agency for nonpayment of a tax if the tax imposed is determined to be nondischargeable and was incurred three years prior to filing a petition.
  9. Governmental or non-profit student loans if the court finds that the repayment of the loan would not impose a hardship on the debtor and the debtor’s dependents.
  10. A debt arising out of a judgment against debtor for death or personal injury of another resulting from debtor’s operation of a motor vehicle or aircraft while intoxicated.
  11. Debts owed in a previous bankruptcy proceeding where the debtor waived or was denied discharge.
  12. A debt arising from a judgment or consent decree issued by the FDIC or arising from a settlement of a fraud action involving a bank or credit union.
  13. Debt for payment of an order of restitution or fines issued under the Mandatory Victims Restitution Act of 1996.
  14. Debt to pay a tax to a governmental unit, other than the United States that would be nondischargeable.
  15. A fine or penalty imposed under Federal election law.
  16. A debt to a spouse, former spouse or child incurred to pay obligations of a divorce or separation agreement other than child and spousal support unless the court determines otherwise.
  17. Fees owed to a membership association for debtor’s interest in a dwelling or condominium for the period the debtor owns the unit after the order for relief.
  18. Filing fees for filing a complaint, motion, or appeal and costs related to filings by a prisoner.
  19. Debt owed to a pension or profit sharing plan under certain sections of the Internal Revenue Code.
  20. A debt owed for the violation of any Federal Securities laws.
  21. A debt owed to a creditor that the court, upon hearing, determines to be nondischargeable.


To find out if your assets are dischargeable through bankruptcy, contact Chicago bankruptcy attorney Lorraine M. Greenberg to discuss your case.