What debts are eligible for discharge?
The ability to discharge debts by filing bankruptcy varies depending on the chapter. Section 523(a) of the Bankruptcy Code specifically outlines various types of debts as ineligible for discharge. Congress has determined that public policy should prohibit the discharge of certain debts. For example, the legislature does not want to encourage drunk driving or fraud and therefore will not allow debts incurred through those acts to be discharged in bankruptcy. Debts excluded from discharge by 523(a) are not affected by filing bankruptcy and will still be owed after the discharge of eligible debts. A Chapter 13 bankruptcy allows more debt to be discharged than a Chapter 7 bankruptcy. Debts dischargeable in a Chapter 13, but not in Chapter 7, include debts for willful and malicious injury to property, debts incurred to pay non-dischargeable tax obligations, and debts arising from property settlements in divorce or separation proceedings.
