Attorney at Debt Advisors Law Offices
Practice Areas: Chapter 7 Bankruptcy, Chapter 13 Bankruptcy, Stop Foreclosure
Filing for Chapter 7 bankruptcy in Wisconsin can bring significant relief if you’re overwhelmed by debt. While it’s often seen as a fresh start, Chapter 7 bankruptcy doesn’t wipe the slate completely clean. Although filing for this type of bankruptcy can allow you to discharge many debts, some will still follow you after your case is closed.
Knowing which debts can’t be discharged in a Chapter 7 bankruptcy in Wisconsin is crucial to making an informed decision about whether this path is right for you. This guide breaks it down in plain language so you understand what to expect.
Chapter 7 bankruptcy is a legal process that helps individuals eliminate many unsecured debts. It’s often called “liquidation bankruptcy,” but in most cases, you don’t lose your property thanks to exemptions available under Wisconsin law. Instead, the goal is to discharge (legally erase) debts that you can’t afford to pay.
An automatic stay goes into effect once you file. This stops collection efforts, wage garnishments, and lawsuits. The bankruptcy court typically grants a discharge for qualifying debts after about three to four months.
Certain debts, including child support, alimony, and most student loans, are presumed non-dischargeable under federal bankruptcy law. — U.S. Bankruptcy Code, 11 U.S.C. § 523
However, not every debt qualifies for discharge. Some are automatically excluded. Creditors may challenge others in court.
The Bankruptcy Code outlines specific types of debt that Chapter 7 bankruptcy cannot erase. These debts either survive automatically or require court approval to determine whether discharge is appropriate.
Child support and alimony are always non-dischargeable. These debts remain enforceable even after bankruptcy and cannot be paused or reduced through Chapter 7.
Most student loans survive bankruptcy unless you can prove “undue hardship” in court. This requires filing an adversary proceeding or a formal lawsuit within your bankruptcy case.
Recent income tax debts typically remain due after a Chapter 7 bankruptcy. Discharge may apply only if
In Wisconsin, state income taxes from recent years may not be discharged if they don’t meet the three-part IRS test: age, filing status, and assessment date.
Refer to IRS guidance for more information.
If you caused injury or death while driving under the influence, you can’t discharge the related debts (such as medical expenses or judgments).
Any court-ordered criminal fines or restitution from a conviction cannot be erased through bankruptcy. They must still be paid.
Debts obtained through fraud, misrepresentation, or recent luxury spending (typically within 90 days before filing) may be excluded if creditors challenge them in court.
While federal laws apply in all bankruptcy cases, Wisconsin adds a few crucial twists:
In Wisconsin, some discharged debts may still appear as judgments on public records unless you file additional paperwork. This step ensures your credit report and legal records reflect your discharge.
State tax debts that don’t meet federal discharge timing requirements will remain. This includes income taxes from recent years or taxes assessed too recently to be included in the filing.
An adversary proceeding is a lawsuit filed within your bankruptcy to decide whether you may discharge a particular debt. Creditors may use this process to challenge discharge if they believe you acted fraudulently.
A creditor may file an adversary proceeding if they believe the debt was incurred through fraud, false representation, or malicious intent.
You might also file one to seek discharge of student loans. These proceedings involve presenting evidence, and outcomes vary depending on the circumstances.
Not all debts survive Chapter 7. Many common financial obligations are fully dischargeable under Wisconsin and federal law. Such as-
| Type of Debt | Discharged? | Notes |
| Credit card debt | Yes | Unless used for recent luxury items |
| Medical bills | Yes | Includes hospital, dental, and other healthcare providers |
| Child support & alimony | No | Always remains due |
| Student loans | No (unless hardship proven) | Requires adversary proceeding |
| DUI-related personal injury | No | Federal law excludes these from discharge |
| Recent income taxes | No | May be dischargeable if over 3 years old |
| Reaffirmed car loan/mortgage | No | Voluntary agreement to repay post-bankruptcy |
Non-dischargeable debt remains legally enforceable even after you complete your bankruptcy case. Examples include child support, recent tax debts, and most student loans.
Student loans are rarely discharged. You must file an adversary proceeding and prove that repaying the loan would cause you undue hardship. This is difficult under current legal standards.
Most credit card debt is dischargeable unless the court finds the charges were made fraudulently, such as luxury purchases right before filing or the use of false information.
Yes. If you reaffirm a car loan, you’re agreeing to keep the debt after bankruptcy. You must continue making payments, and the lender can repossess the car if you fail to do so.
Some older tax debts may be dischargeable, but recent ones typically are not. Both federal and state income tax rules determine whether a tax debt qualifies for discharge.
It’s important to review your entire debt situation with a bankruptcy attorney. They can help you understand which debts can be discharged under Chapter 7 and which ones cannot.
Chapter 7 bankruptcy offers powerful debt relief, but it’s not a cure-all. Certain debts, such as child support, recent taxes, and reaffirmed loans, will survive the process. By understanding which debts remain after Chapter 7, you can avoid surprises and plan smarter.
At Debt Advisors Law Offices, we help people throughout Wisconsin, including Milwaukee, Madison, Kenosha, Sheboygan, Oshkosh, and Green Bay, explore their legal options.
If you’re unsure which of your debts qualify for discharge, we invite you to schedule a free consultation to get clear, honest answers. Your path to financial clarity starts with knowing the facts.
Learn about bankruptcy protections, types of bankruptcy, how to get started, what to expect, and who to trust. Filing bankruptcy is the ONLY way to completely eliminate debt. If bankruptcy is right for you, it offers powerful protections that cannot be achieved through alternative solutions such as hardship relief, loans, or debt settlement.
