A bankruptcy discharge wipes out most debts and bars creditors from ever collecting them again, but it is not total. The federal Bankruptcy Code lists specific categories of non-dischargeable debt — obligations that survive your case and remain fully collectible even after you receive a discharge. Understanding which debts survive is essential, because filing will not solve a debt that the law refuses to erase.
This is federal law, not Missouri statute. Whether a Missourian files in the U.S. Bankruptcy Court for the Eastern or Western District of Missouri, the same federal rules decide dischargeability. The two governing statutes are 11 U.S.C. § 523 (exceptions to discharge — particular debts that survive) and 11 U.S.C. § 727 (denial of the entire discharge for debtor misconduct). This guide explains both, the difference between them, and what each side should do.
Debts that are automatically non-dischargeable
Some debts survive a discharge automatically — the creditor does not have to take any action, file anything, or prove anything. These categories are written into 11 U.S.C. § 523 and apply by operation of law. If a debt falls into one of them, it simply passes through your bankruptcy untouched.
The most common automatically non-dischargeable debts include:
- Recent taxes. Most recent income taxes and many other tax obligations survive. Some older income taxes can be discharged, but only if strict federal timing rules are met; assume recent tax debt is not wiped out.
- Domestic support obligations. Child support and alimony (spousal maintenance) are not dischargeable. These are among the most strongly protected debts in the entire Code.
- Most student loans. Government and qualified private student loans survive unless the debtor proves "undue hardship" in a separate court proceeding — a difficult standard discussed below.
- Debts from death or injury caused by drunk driving. A debt for personal injury or death caused by the debtor's operation of a vehicle while intoxicated (a DUI) is non-dischargeable.
- Criminal fines and restitution. Most criminal fines, penalties, and restitution owed to a government unit survive.
Because these survive automatically, a creditor holding one of them does not need to participate actively in your case to preserve it. The debt is simply still owed when the case closes.
Debts that survive only if a creditor objects
A second group of debts is different: they are non-dischargeable only if the creditor takes action. For these categories, the creditor must file a lawsuit inside the bankruptcy case — an adversary proceeding — and prove that the debt fits the exception. If the creditor does nothing, the debt is discharged like any other.
These objection-required categories under 11 U.S.C. § 523(a) include debts arising from:
- Fraud or false financial statements. Money, property, or credit obtained by fraud, false pretenses, or a materially false written statement about the debtor's financial condition that the creditor reasonably relied on.
- Fraud or defalcation by a fiduciary. Wrongdoing by someone acting in a position of trust — for example, mishandling funds held as a trustee.
- Embezzlement or larceny. Taking property that was entrusted to the debtor (embezzlement) or outright theft (larceny).
- Willful and malicious injury. Intentional, deliberate harm to another person or their property — not mere negligence or an accident.
The deadline to object
The reason these debts are not automatic is that they require proof, and the Code sets a strict deadline for raising them. A creditor (or the trustee) who wants to challenge dischargeability under these categories generally must file the adversary complaint within a fixed period tied to the first date set for the meeting of creditors (the "341 meeting"). Miss that deadline, and the objection is typically lost — the debt is discharged even if it would have qualified as fraud. Extensions are possible but must be requested before the deadline runs. For creditors, this is the single most important date in the case.
Exception to discharge vs. denial of the entire discharge
It is critical to distinguish two very different concepts that are easy to confuse.
An exception to discharge under 11 U.S.C. § 523 affects one debt. The creditor argues that a particular obligation — say, a loan obtained by fraud — should survive while the rest of the debtor's discharge proceeds normally. Even if the creditor wins, the debtor still gets a discharge of every other dischargeable debt. Only the single excepted debt remains.
A denial of the entire discharge under 11 U.S.C. § 727 is far more severe. Here the objection is not to one debt but to the debtor's right to a discharge at all. Section 727 lets the court deny the whole discharge when the debtor has engaged in serious misconduct in connection with the case — for example, concealing or fraudulently transferring assets, destroying or falsifying financial records, lying under oath, or failing to explain a loss of assets. If the discharge is denied under § 727, none of the debts are wiped out; the debtor emerges from bankruptcy still owing everything.
In short: § 523 takes away one debt; § 727 takes away the entire discharge. One punishes a specific kind of obligation; the other punishes a dishonest debtor.
The "undue hardship" standard for student loans
Student loans deserve special attention because so many filers carry them. They are not automatically gone, but they are not absolutely barred either — they can be discharged if the debtor proves "undue hardship." This requires filing a separate adversary proceeding and meeting a demanding federal case-law standard.
Most courts apply the Brunner test, which asks whether (1) the debtor cannot maintain a minimal standard of living while repaying the loan, (2) that situation is likely to persist for a significant part of the repayment period, and (3) the debtor has made good-faith efforts to repay. This is federal case law, not a Missouri rule, and it is hard to satisfy. Many debtors who could otherwise discharge their student loans never bring the action because the burden is steep — but for filers with a genuine, lasting inability to pay, it remains a real option worth exploring with counsel.
Practical notes for debtors and creditors
For debtors: Do not assume bankruptcy erases everything. Map your debts before you file. Recent taxes, child support, alimony, and student loans will almost certainly survive, so plan for them. Be scrupulously honest and complete on your schedules and at the 341 meeting — concealment or false statements are exactly the kind of misconduct that triggers a § 727 denial of your entire discharge, turning a routine case into a disaster. Listing a debt does not make a non-dischargeable debt go away, but failing to list one can create separate problems.
For creditors: If you believe a debt arose from fraud, a breach of fiduciary duty, embezzlement, larceny, or a willful and malicious injury, you must act. These exceptions are not automatic — calendar the objection deadline the moment the case is filed, and file your adversary complaint on time. If you also have evidence the debtor hid assets or lied, consider a § 727 action to block the discharge entirely. Sitting back and assuming a "bad" debt will survive on its own is a common and costly mistake.
Frequently Asked Questions
Is dischargeability decided by Missouri law or federal law?
It is federal. Exceptions to discharge are governed by 11 U.S.C. § 523 and denial of the entire discharge by 11 U.S.C. § 727, regardless of where you live. Missouri law controls separate issues like which property you can exempt, but not which debts survive.
Which debts survive a discharge automatically?
Most recent taxes, domestic support obligations (child support and alimony), most student loans (absent undue hardship), debts for injury or death caused by drunk driving, and most criminal fines and restitution. No creditor action is needed for these to survive.
Which debts survive only if a creditor objects?
Debts arising from fraud or false financial statements, fraud or defalcation by a fiduciary, embezzlement, larceny, and willful and malicious injury. The creditor must file an adversary proceeding and prove the exception before a strict deadline, or the debt is discharged.
What is the difference between Section 523 and Section 727?
Section 523 creates exceptions for individual debts — one obligation survives while the rest of the discharge stands. Section 727 allows the court to deny the entire discharge for debtor misconduct, leaving every debt intact. Section 523 is about one debt; Section 727 is about the whole case.
Can student loans ever be discharged in bankruptcy?
Yes, but only by proving "undue hardship" in a separate adversary proceeding. Most courts use the federal Brunner test, which examines minimal standard of living, the persistence of hardship, and good-faith repayment efforts. It is a demanding standard, but not impossible.
What happens if a creditor misses the objection deadline?
For the objection-required categories under § 523(a), the debt is generally discharged — even if it arose from fraud. The deadline, tied to the first date set for the meeting of creditors, is strict, so creditors must file on time or request an extension before it expires.
Legal Disclaimer
This guide provides general legal information about federal bankruptcy law as it affects Missouri filers and is not legal advice. It does not create an attorney-client relationship. Dischargeability outcomes depend on current federal law, the specific facts of your case, and applicable court deadlines and standards; consult a qualified Missouri bankruptcy attorney before relying on anything here.