Understanding Non-Dischargeable Debts in Bankruptcy

By Alexander Hernandez, J.D., Professor, and Author of Consumer Bankruptcy Law (Routledge).

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. Paralegals and students who are buying single copies can do so via Amazon Books. To access my YouTube channel, click this link. You can also listen to my podcast on Spotify.

You can learn more about filing for bankruptcy and the bankruptcy petition via this link. Information on the bankruptcy court system, contact information for trustees, and your state’s exemptions can be found here. The federal bankruptcy exemptions are listed here. The latest version of the 341 Meeting of the Creditors can be found here.

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