nondischargeable debts

Primary tabs

Nondischargeable Debts are debts that cannot be extinguished in bankruptcy. As a threshold matter, regardless of the type of bankruptcy, 11 U.S.C. § 523 categorizes certain debts as nondischargeable. For example, 11 U.S.C. § 523(a)(1) categorizes certain tax or customs duties as nondischargeable; 11 U.S.C. § 523(a)(2) categorizes fraudulently obtained credit as nondischargeable; and 11 U.S.C. § 523 (a)(5) categorizes domestic support obligations (e.g. alimony) as nondischargeable. Under a Chapter 7 bankruptcy, 11 U.S.C. § 727 provides for certain circumstances when a court may refuse to discharge a debt. For example, if the debtor refused a court order or failed to satisfactorily explain any loss of assets, the court may refuse to discharge those debts. Under a Chapter 13 bankruptcy, 11 U.S.C. § 1328 provides for certain circumstances when a court cannot refuse to discharge debt. For example, under 11.U.S.C. § 1328(a)(1) and 11 U.S.C. § 1322, debts with last payments that extent beyond the end date of the debtor’s repayment plan are nondischargeable. Additionally, 11 U.S.C. § 1328(a)(4) classifies debt “for restitution, or a criminal fine, included in a sentence on the debtor’s conviction of a crime” as nondischargeable.

[Last updated in December of 2020 by the Wex Definitions Team]