Chapter 7 bankruptcy offers some of the most powerful debt relief available under federal law. For many Missouri residents buried under credit card bills, medical expenses, and personal loans, a successful Chapter 7 filing can eliminate tens of thousands of dollars in debt within a matter of months. That kind of relief is real, and for the right person in the right financial situation, it can be genuinely life-changing.
But Chapter 7 does not erase everything. Federal law carves out specific categories of debt that survive the bankruptcy process no matter what, and filing without knowing which ones apply to you can mean going through an entire case that does not solve the problem you came in with. This guide covers the major types of nondischargeable debts in Chapter 7, with federal code citations, so you go in with accurate expectations.
The Legal Foundation – 11 U.S.C. § 523
The controlling law on nondischargeable debts is found in the federal Bankruptcy Code at 11 U.S.C. § 523. That section lists 19 categories of debts excepted from discharge. The Western District of Missouri Bankruptcy Court confirms on its official FAQ that examples include taxes, student loans, fraud-based debts, alimony, and child support. These rules apply to every Chapter 7 case filed in Missouri.
Child Support and Alimony in Chapter 7 Bankruptcy
Child support and spousal maintenance (alimony) are among the most absolute of all nondischargeable debts. Under 11 U.S.C. § 523(a)(5), domestic support obligations cannot be discharged in any chapter of bankruptcy. This includes arrears, ongoing monthly obligations, and amounts set by a Missouri court order or dissolution decree.
Missouri courts have consistently reinforced this rule. In Henderson v. Henderson, No. 98357 (Mo. App. E.D. Dec. 26, 2012), the Missouri Court of Appeals reaffirmed that neither a domestic support obligation nor a marital debt assigned in a divorce decree is dischargeable in bankruptcy. Filing Chapter 7 will not reduce what you owe in child support or alimony, and enforcement can resume as soon as your case concludes.
Tax Debts
Tax obligations are among the most complicated areas of bankruptcy law. The general rule under 11 U.S.C. § 523(a)(1) is that recent tax debts are not dischargeable. However, older income tax debts may qualify for discharge if all of the following conditions are satisfied.
- The tax return was due at least three years before the bankruptcy filing date.
- The return was actually filed at least two years before the filing date.
- The tax was assessed by the IRS or Missouri Department of Revenue at least 240 days before filing.
- The return was not fraudulent, and the debtor did not willfully attempt to evade the tax.
All four conditions must be met. If even one is missing, the tax debt survives discharge. Payroll taxes and trust fund penalties are never dischargeable under any circumstances. For Missouri personal property taxes, all years except the current year and the immediately prior year may potentially be discharged. For example, a 2025 filing would leave 2024 and 2025 personal property taxes intact.
Student Loans
Student loan debt is the category that catches most filers off guard. Under 11 U.S.C. § 523(a)(8), government-backed and nonprofit-funded student loans are not dischargeable unless the debtor proves that repayment would impose an “undue hardship” on them and their dependents.
Missouri falls within the Eighth Circuit, where courts have applied both the Brunner test and a broader totality-of-circumstances approach to assess undue hardship claims. In Conway v. National Collegiate Trust, 495 B.R. 416 (B.A.P. 8th Cir. 2013), the Eighth Circuit Bankruptcy Appellate Panel showed a willingness to look beyond a rigid application of Brunner when the facts warrant it.
Even so, discharging student loans requires filing a separate adversary proceeding within the bankruptcy case, and the burden of proof is high. It is not impossible, but it demands careful preparation and a strong factual record.
Debts Obtained Through Fraud or False Pretenses
If a creditor can prove that you obtained money, property, or services through fraud, false pretenses, or a materially false financial statement, that specific debt will not be discharged. This is covered under 11 U.S.C. § 523(a)(2).
Two specific presumptions are worth knowing. Federal law presumes certain recent debts nondischargeable. Luxury purchases over a set threshold from one creditor within 90 days of filing, and cash advances over a separate threshold within 70 days, may be challenged by a creditor as fraudulent. These dollar limits are adjusted periodically. Your bankruptcy attorney can confirm the current figures at the time of your filing.
Government Fines, Penalties, and Criminal Restitution
Debts owed to the government in the form of fines, penalties, and criminal restitution are not dischargeable under 11 U.S.C. § 523(a)(7). This means outstanding traffic tickets, municipal court fines, and any restitution ordered as part of a Missouri criminal sentence will all remain intact after your Chapter 7 discharge. These debts exist to punish and deter, and Congress has consistently declined to allow bankruptcy courts to wipe them away.
Debts From Willful and Malicious Injury
Under 11 U.S.C. § 523(a)(6), any debt resulting from a willful and malicious injury to another person or their property survives discharge. If someone obtained a civil judgment against you because you intentionally harmed them, that judgment will not be eliminated in Chapter 7. Courts interpret “willful and malicious” to mean the debtor acted deliberately and without just cause, not merely that the act was negligent.
DUI-Related Personal Injury and Death Claims
Civil liability for causing death or personal injury while operating a vehicle under the influence of alcohol or drugs is permanently nondischargeable under 11 U.S.C. § 523(a)(9). This applies regardless of the size of the judgment against you. If a Missouri court entered a civil judgment against you related to a DUI accident, that obligation will follow you beyond bankruptcy.
Debts Not Listed in Your Bankruptcy Petition
A debt that is simply omitted from your bankruptcy schedules may not receive a discharge. Under 11 U.S.C. § 523(a)(3), unlisted or incorrectly listed debts can survive if the creditor did not have notice or actual knowledge of the case in time to file a proof of claim or a dischargeability complaint. Accuracy in completing your petition is not optional. Every creditor you owe money to must be listed.
Post-Petition HOA Fees
Homeowners association fees that become due after your bankruptcy filing date are not dischargeable under 11 U.S.C. § 523(a)(16). This frequently affects filers who are surrendering a home in bankruptcy but remain on title while the foreclosure process runs its course. You are responsible for HOA assessments that come due from the date of filing until the property title officially transfers to a new owner.
Key Takeaways
- Federal law under 11 U.S.C. § 523 identifies 19 categories of debts that cannot be eliminated in Chapter 7 bankruptcy.
- Child support and alimony are never dischargeable in any chapter of bankruptcy, and Missouri courts consistently uphold this rule.
- Most recent income tax debts survive discharge; older income taxes may qualify if all strict timing requirements are met. Payroll taxes and trust fund penalties are never dischargeable.
- Student loans require a separate adversary proceeding and proof of undue hardship; discharge is possible in the Eighth Circuit but difficult.
- Luxury purchases over $900 from one creditor within 90 days of filing, and cash advances over $1,250 within 70 days, are presumed nondischargeable under current law.
- Government fines, criminal restitution, DUI-related judgments, and debts from intentional harm all survive a Chapter 7 discharge.
- Debts left off your bankruptcy petition may not be discharged, making accuracy in your filing essential.
- Post-filing HOA fees are not dischargeable even when you are surrendering the property.
Frequently Asked Questions
Can Chapter 7 discharge back income taxes in Missouri?
It depends on the age and history of the tax debt. Income taxes that satisfy all four qualifying conditions, including being assessed more than 240 days before filing and due more than three years prior, may be dischargeable. Recent taxes and payroll taxes are never dischargeable.
Does filing Chapter 7 stop child support collection in Missouri?
The automatic stay pauses most collection actions, but it does not halt domestic support enforcement. Missouri’s Division of Child Support Enforcement can continue collecting during the case, and the underlying debt is never discharged.
Is it possible to discharge student loans in Missouri?
Yes, though uncommon. You must file an adversary proceeding and satisfy the undue hardship standard. Missouri falls in the Eighth Circuit, where courts have shown some flexibility beyond the strict Brunner framework, but a strong factual record of financial hardship is still required.
What happens if I made large credit card purchases before filing?
Luxury charges over $900 to one creditor within 90 days of filing, and cash advances over $1,250 within 70 days, are presumed fraudulent under current federal law. A creditor can file an adversary proceeding to block discharge of those specific debts.
Do traffic tickets and court fines get discharged in Chapter 7?
No. Fines and penalties owed to any government body in Missouri are not dischargeable in Chapter 7. Some of these obligations may be handled in a Chapter 13 repayment plan, but not through liquidation bankruptcy.
What if I forgot to list a creditor in my bankruptcy schedules?
An omitted creditor may not be bound by your discharge, meaning that debt survives. If you catch the omission while your case is still open, your schedules may be amended. Completeness and accuracy in your petition are essential from the start.
Talk to a Missouri Bankruptcy Attorney Before You File
Understanding which of your debts are dischargeable and which ones survive Chapter 7 is one of the most important things you can do before deciding whether to file. The category of debt, the age of the obligation, and how it was incurred all affect the outcome, and getting it wrong can mean going through an entire bankruptcy case that does not actually solve the problem you came in with.
At Doyel Law in Sunset Hills, Missouri, we review your full financial picture and give you a straight answer about what a realistic outcome looks like for your situation. If you are ready to get clear answers about what debts survive chapter 7 bankruptcy and whether filing makes sense for your situation, contact Doyel Law today to schedule a consultation. The sooner you have accurate information, the sooner you can make a decision that genuinely moves your financial life forward.