Non-Dischargeable Debt

Category: legal

Specific types of debt that cannot be eliminated through a bankruptcy proceeding due to public policy.

These are the "un-erasable" debts. The bankruptcy code explicitly protects certain obligations from being wiped clean, including most student loans, recent tax debts, child support, alimony, and debts incurred through willful malice or criminal fraud.

Common Examples

• Despite successfully liquidating his assets in Chapter 7, the massive IRS tax lien remained as a non-dischargeable debt.
• Creditors will often file an adversary proceeding to prove that a debt was incurred through fraud, thereby rendering it non-dischargeable.