What is a non-dischargeability action?

A non-dischargeability action is a legal action where a creditor (a person or company to whom money is owed) demands that a debtor (the person owing the money) must still pay the debt, even if the debtor has declared bankruptcy. In California, creditors’ rights are protected under California law. To file a non-dischargeability action, the creditor needs to prove that the debt was incurred for certain reasons, based on the California Bankruptcy Code. These reasons can include fraud, willful and malicious injury, breach of fiduciary duty, a debt that was not included in the bankruptcy filing, or a debt related to a tax lien. Non-dischargeability actions can be complex and require specialized knowledge of both bankruptcy and California law. Creditors will typically hire a lawyer to represent them in the action, and the debtor must be properly served with a copy of the complaint. The court will then decide if the debt is non-dischargeable and whether the creditor is owed the full amount. If the court determines the debt is non-dischargeable, the debtor is still responsible for paying the debt, even if they are in bankruptcy proceedings.

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