5 Debts That Surprisingly Don’t Get Wiped Out in Chapter 7
Financial pressure can build slowly or hit all at once. Missed payments, rising balances, and collection calls often push people to look for a way out, and Chapter 7 can feel like a lifeline. Many filers expect it to erase most, if not all, of their debts. When they later discover that some obligations remain, it can feel frustrating and discouraging.
That reaction is common, and it doesn’t mean you’ve failed or misunderstood the process. It simply means there’s more to consider before moving forward. Reach out to us to talk through your options and get clarity before making any decisions.
At Watson Law Firm, we help individuals across Arkansas who are exploring bankruptcy understand what Chapter 7 can and can’t do for their financial future. We also serve clients located in Harrison, Arkansas, as well as Boone County, Newton County, Marion County, and Baxter County.
While it can clear many unsecured debts, certain obligations usually survive the process. Knowing this ahead of time can prevent surprises and help you plan with confidence. An experienced bankruptcy attorney can help. Reach out to our firm to learn more today.
Child Support And Alimony Obligations
Debts related to family support remain a priority even after a Chapter 7 discharge. These obligations are tied to court orders meant to protect children and former spouses, which is why they continue despite filing.
Courts don’t treat these payments as ordinary financial obligations. Instead, they’re viewed as ongoing responsibilities that support basic living needs.
Common family support debts that remain:
Child support payments, including unpaid balances
Spousal support or alimony ordered during divorce proceedings
Interest and penalties tied to overdue support
After bankruptcy, these payments still need to be made on time. Falling behind can lead to wage withholding or other enforcement actions. We often help clients build realistic post-bankruptcy budgets that account for these obligations, so progress doesn’t come with added stress.
Certain Income Tax Debts
Taxes are another area where expectations don’t always match reality. While some older income tax debts may qualify for discharge, many tax obligations survive Chapter 7.
Tax agencies can resume collection efforts after the case closes if the debt isn’t discharged, which makes planning especially important to avoid future liens, wage garnishments, or unexpected financial pressure later on.
Tax debts that often survive Chapter 7:
Recent income tax balances
Payroll taxes are connected to a business
Penalties linked to fraudulent or inaccurate filings
Reviewing tax history before filing can make a real difference. We help clients identify which tax debts may remain so they can prepare for repayment options and avoid post-bankruptcy setbacks.
Student Loan Balances
Student loans are among the most surprising debts to remain after Chapter 7. Many people assume these loans will be treated like credit cards or personal loans, only to learn that they usually aren’t discharged.
There is a separate court process for challenging student loan debt, and success depends on specific circumstances that go beyond financial hardship alone, often involving detailed proof and careful evaluation of the long-term repayment impact.
Student loan debts that typically remain:
Federal student loans
Private education loans
Parent loans taken out for a child’s schooling
Because these balances often continue after bankruptcy, it’s important to include them in long-term planning. We help clients consider repayment options and relief programs to regain financial stability even when student loans remain part of the picture.
Criminal Fines And Court-Ordered Restitution
Chapter 7 doesn’t eliminate debts tied to criminal cases. These obligations exist to hold individuals accountable and compensate victims, not to collect consumer debt, discourage future misconduct, or shift responsibility away from court-ordered consequences.
Even when a fine or restitution order feels purely financial, bankruptcy law treats it differently from ordinary bills, focusing on accountability, court authority, and obligations tied to criminal responsibility rather than consumer debt.
Examples of non-dischargeable criminal debts:
Court fines resulting from criminal convictions
Restitution ordered to repay victims
Fees associated with probation or parole
These debts often come with strict terms and deadlines. We help clients understand what remains owed after bankruptcy so they can comply with court orders while still benefiting from relief on other debts.
Debts From Fraud Or Intentional Harm
Some debts survive Chapter 7 because of how they were created. When a creditor claims that money was obtained dishonestly or that someone was intentionally harmed, the court may decide that the debt remains.
Creditors can raise objections during the case, which can lead to additional proceedings focused on specific balances, requiring extra time, documentation, and careful preparation before the court makes a final decision.
Debts that may remain due to conduct:
Charges resulting from fraud or false statements
Debts tied to embezzlement
Court judgments for intentional injury
These situations can be stressful, especially when they arise unexpectedly. We help clients review their financial history before filing so they understand potential risks and can prepare for how these debts may be treated in bankruptcy.
Take The Next Step Toward Financial Relief
Chapter 7 bankruptcy can still offer meaningful relief, even when certain debts remain afterward. Knowing what won’t be discharged allows you to make informed choices and avoid disappointment later. With the right preparation, many people find they can reduce financial pressure and move forward with greater confidence.
At Watson Law Firm, we assist clients in Harrison, Arkansas, and throughout Boone County, Newton County, Marion County, and Baxter County as they consider bankruptcy and their next steps. If you’re weighing your options and want clear guidance that puts your situation first, reach out to us to discuss how Chapter 7 may fit into your financial goals.
