What is a non-dischargeable debt?

A non-dischargeable debt is a type of debt that cannot be erased through filing for bankruptcy. In North Dakota, creditor’s rights law stipulates that certain types of debts are non-dischargeable because they are considered priority debts that should be paid off first. These debts are typically related to court-ordered payments, such as alimony or child support, student loans, debts owed due to fraud or criminal activity, and taxes. Other non-dischargeable debts can include debts for personal injury or wrongful death caused by the debtor, debts owed for luxury purchases made shortly before filing for bankruptcy, and unreimbursed funds from Ponzi schemes or similar types of activity. Though the debtor can file for bankruptcy, if they have non-dischargeable debts, those debts must still be paid off in full. This means that the debtor can still be held liable for paying back a non-dischargeable debt even if the rest of their debts are discharged. If the debtor fails to make payments on these debts, creditors may pursue other legal remedies such as wage garnishment or a lawsuit to collect what is owed. It’s important for debtors to understand which debts are non-dischargeable prior to filing for bankruptcy. This will ensure they know which debts must still be paid off and can help them make an informed decision about how to handle their financial situation.

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What is a non-dischargeable debt?

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