In a Chapter 7 bankruptcy (liquidation), the Bankruptcy laws will not allow a debtor to “discharge” certain types of debts. The most common “nondischargeable” debts are taxes, student loans, child support obligations, and criminal fines. However, there are exceptions to this basic rule, depending upon the facts of each particular case.
For example, concerning taxes, it is important to know how old the tax debt is, whether a tax lien has been filed against the debtor, and whether the debtor has filed all of his tax returns. Concerning student loans, it is important to know whether the student loan has been guaranteed by the government and whether the debtor has the ability to repay the student loan.
In a Chapter 13 bankruptcy (reorganization), although a particular debt cannot be discharged, it can be placed into a Chapter 13 Plan and paid over the term of the plan (3 to 5 years). Often, this can stop the interest and late fees charges on the particular debt.