Understanding Non-Dischargeable Debts in Bankruptcy

Per the U.S. Bankruptcy Code, debts incurred because of criminal activity or criminal fraud are non-dischargeable debts. That means these debts cannot be eliminated or wiped out through the bankruptcy process.

Updated on January 20, 2025.

In this blog post and the accompanying YouTube video, I discuss which debts cannot be discharged in bankruptcy, including debt related to criminal fraud. In this case, I use Herman Wright, also known as Rapper G-Herbo’s guilty plea to wire fraud as an example.

According to the U.S. Bankruptcy Code, Section 523(a)(2)(A), debts obtained by “false pretenses, a false representation, or actual fraud” cannot be discharged. This means if someone has committed fraud, the debt resulting from that fraud will remain even after bankruptcy.

• How Domestic Support Obligations Affect a Bankruptcy Case

For example, if someone took out a loan by lying about their financial situation or used someone else’s identity to obtain credit, those debts would not be wiped out in bankruptcy. In G-Herbo’s case, he obtained credit under false pretenses. Per a press release from the U.S. Department of Justice, was sentenced by U.S. District Court Judge Mark G. Mastroianni to three years’ probation and ordered to pay restitution and forfeiture of $139,968 for each offense, as well as a $5,500 fine.

List of Non-Dischargeable Debts

• Debts related to alimony and child support are known as Domestic Support Obligations (DSOs) under the Bankruptcy Code.
• Most taxes.
• Debts not listed in the bankruptcy petition.
• Student Loans
• Secured debts where the asset is being kept.
• Debts related to personal injury cases such as car accidents and compared to DUI-related car accidents.
• Debts related to willful and malicious acts.

Colleges and universities can purchase my bankruptcy law textbook directly from Routledge Publishing. For paralegals and students buying single copies, you can do so via Amazon books. To access my YouTube channel, click this link.

Need to look for prior blog posts or other categories? Click the links below or use the search feature at the top of the page:

• Bankruptcy
• Your Wallet

Please note the information on this site does not constitute legal advice and should be considered for informational purposes only.