Debt Discharge Comparison: Chapter 7 vs Chapter 13
Both Chapter 7 and Chapter 13 eliminate most unsecured debts, but they handle certain categories very differently. The table below shows which debts are dischargeable under each chapter.
| Debt Type | Ch.7 | Ch.13 |
|---|---|---|
| Credit cards | Discharged | Discharged after plan |
| Medical bills | Discharged | Discharged after plan |
| Personal loans | Discharged | Discharged after plan |
| Utility arrears | Discharged | Discharged after plan |
| Payday loans | Discharged | Discharged after plan |
| Superdischarge (Ch.13 Only) | ||
| Willful property damage | Not discharged | Discharged |
| Non-support marital debts | Not discharged | Discharged |
| Never Dischargeable | ||
| Child support / alimony | Never | Never |
| Recent taxes (last 3 years) | Not discharged | Priority in plan |
| Fraud debts | Not discharged | Not discharged |
| Student loans | Hardship only | Hardship only |
| DUI injury debts | Not discharged | Not discharged |
| Criminal fines/restitution | Not discharged | Not discharged |
Secured vs. Unsecured vs. Priority Debts
Understanding the three categories of debt is essential for knowing how your debts will be treated in bankruptcy.
Secured Debts
Secured debts are backed by collateral - a house (mortgage), a car (auto loan), or other property. In Chapter 7, you typically must either surrender the property, reaffirm the debt and keep paying, or redeem the property by paying its current value in a lump sum. In Chapter 13, you can keep secured property by paying through your plan, and you may be able to reduce the loan balance to the property's current value through a "cramdown" on certain debts. See keeping your property for details.
Unsecured Debts
Unsecured debts have no collateral backing them - credit cards, medical bills, personal loans, and most other consumer debt. These are the debts that bankruptcy is designed to eliminate. In Chapter 7, most unsecured debts are wiped out entirely in 3-4 months. In Chapter 13, you pay a portion of these debts through your plan based on your disposable income, and the remaining balance is discharged at plan completion.
Priority Debts
Priority debts receive special treatment under 11 U.S.C. section 507. They must be paid in full in a Chapter 13 plan and are not dischargeable in Chapter 7. Priority debts include recent income taxes (within 3 years of filing), domestic support obligations (child support and alimony), and certain employee wage claims. While you cannot eliminate these debts, Chapter 13 allows you to pay them over 3-5 years without interest or penalties in many cases.
The Chapter 13 Superdischarge
The Chapter 13 "superdischarge" is one of the most powerful but least understood features of bankruptcy law. Under Section 1328(a), a completed Chapter 13 plan discharges certain debts that survive a Chapter 7 discharge. The key superdischarge debts include:
- Willful and malicious property damage - Section 523(a)(6) as applied to property, not persons. If you damaged someone's car, fence, or other property intentionally, Chapter 13 can discharge that debt.
- Non-support marital debts - Section 523(a)(15) debts from a divorce or separation agreement that are not alimony or child support. For example, if your divorce decree requires you to pay your ex-spouse's credit card balance, that obligation survives Chapter 7 but can be discharged in Chapter 13.
This makes Chapter 13 strategically valuable for debtors who owe debts that would not be discharged in Chapter 7. However, BAPCPA in 2005 narrowed the superdischarge by making more debt categories nondischargeable in both chapters. Before BAPCPA, the superdischarge was significantly broader.
Important: The superdischarge is only available through a full Section 1328(a) discharge after completing all plan payments. A hardship discharge under Section 1328(b) does not include superdischarge protections.
Special Cases: Student Loans and Taxes
Student Loans
Student loans are notoriously difficult to discharge in bankruptcy. Under Section 523(a)(8), both federal and private student loans are nondischargeable unless you can prove "undue hardship" through an adversary proceeding. Most courts apply the Brunner test, which requires showing that (1) you cannot maintain a minimal standard of living while repaying, (2) your situation is likely to persist, and (3) you made good-faith efforts to repay. However, recent DOJ guidance has softened the standard, and more student loan discharges are being granted. See bankruptcystudentloans.org for the latest developments.
Tax Debts
Some tax debts can be discharged in bankruptcy, but strict timing rules apply. Generally, income taxes may be dischargeable if: the tax return was due more than 3 years ago, the return was filed more than 2 years ago, and the tax was assessed more than 240 days ago. In Chapter 13, non-dischargeable priority tax debts must be paid in full through the plan, but this gives you 3-5 years to pay without additional penalties or interest accruing. See bankruptcytaxes.org for detailed timing rules.
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Last updated: March 2026. Not legal advice.
Part of the Open Bankruptcy Project