Filing for bankruptcy can relieve overwhelming debt, but it does not erase all obligations. In both Chapter 7 and Chapter 13 bankruptcy, certain debts remain even after the case ends. Understanding which debts persist helps you plan your financial future.
Debts that survive Chapter 7 bankruptcy
Chapter 7 bankruptcy eliminates many unsecured debts, but some remain. Student loans rarely qualify for forgiveness unless you prove undue hardship. Most tax debts stay unless they meet strict discharge rules. Court-ordered payments like child support and alimony remain enforceable. Criminal fines and restitution require full repayment. If a lawsuit resulted in a fraud-related debt, you must still pay it.
Debts that survive Chapter 13 bankruptcy
Chapter 13 bankruptcy restructures debts rather than erasing them outright. You must fully repay priority debts like child support, alimony, and certain taxes through the repayment plan. Secured debts, such as mortgages or car loans, require payment if you want to keep the property. Student loans remain unless a court approves special relief. Fraud-related debts, criminal fines, and restitution still require payment after the case ends.
Louisiana-specific considerations
Louisiana follows federal bankruptcy rules but includes state-specific exemptions that impact repayment. Property tax debts generally require full repayment. Louisiana law prioritizes child support and alimony, ensuring full repayment. Certain fines, such as those from state agencies, remain enforceable. If fraudulent actions led to the debt, Louisiana courts may deny discharge.
Managing non-dischargeable debts
Even if a debt remains, bankruptcy can make payments more manageable. Chapter 13 allows structured repayment over time, and Chapter 7 frees up income for remaining obligations. Knowing which debts persist helps you make informed financial decisions moving forward.