Not all debts are discharged in bankruptcy. The debts discharged vary under each chapter of the Bankruptcy Code. Section 523(a) of the Bankruptcy Code specifically excepts various categories of debts from the discharge granted to individual debtors.

Therefore, the debtor must still repay those debts after bankruptcy. Congress has determined that these types of debts are not dischargeable for public policy reasons (based either on the nature of the debt or the fact that the debts were incurred due to improper behavior of the debtor, such as the debtor's drunken driving).

There are 19 categories of debt excepted from discharge under chapters 7, 11, and 12. A more limited list of exceptions applies to cases under chapter 13.

Generally speaking, the exceptions to discharge apply automatically if the language prescribed by section 523(a) applies. The most common types of nondischargeable debts are:

• certain types of tax claims

• debts not set forth by the debtor on the lists and schedules the debtor must file with the court

• debts for spousal or child support or alimony

• debts for willful and malicious injuries to person or property

• debts to governmental units for fines and penalties

• debts for most government funded or guaranteed educational loans or benefit overpayments

• debts for personal injury caused by the debtor's operation of a motor vehicle while intoxicated

• debts owed to certain tax-advantaged retirement plans

• debts for certain condominium or cooperative housing fees.

In South Dakota, as in all states, bankruptcy proceedings are governed by federal law, specifically the Bankruptcy Code. Under the Code, not all debts are dischargeable when an individual files for bankruptcy. Section 523(a) outlines the types of debts that are not eliminated through the bankruptcy process. These include, but are not limited to, certain tax obligations, debts omitted from the bankruptcy filing, family support obligations such as alimony and child support, debts arising from willful and malicious acts, fines and penalties owed to government entities, student loans in many cases, debts for personal injury caused by driving under the influence of alcohol or drugs, and certain fees related to housing such as condominium or cooperative fees. The rationale for these exceptions is rooted in public policy, often related to the nature of the debt or the circumstances under which it was incurred. While Chapters 7, 11, and 12 of the Bankruptcy Code have a broader range of nondischargeable debts, Chapter 13 typically has a more limited list. It's important for debtors in South Dakota to consult with an attorney to understand how these rules apply to their specific situation and to ensure that all dischargeable debts are properly listed in their bankruptcy filings.