What is a non-dischargeability action?

A non-dischargeability action is a type of lawsuit that creditors in Washington can file in bankruptcy court if they believe that a debt is not eligible to be wiped out when the debtor files for bankruptcy. In order for a debt to be discharged in bankruptcy, it generally needs to meet specific criteria. Rights of creditors are outlined in the Federal Bankruptcy Code, which states that certain debts, such as taxes, child support, and student loans, are nondischargeable from bankruptcy proceedings. In the event that the debtor does attempt to discharge such debts, the creditor can file a non-dischargeability action to prevent it from being wiped out. The creditor will bear the burden of proving that the debt is nondischargeable, and must present evidence of the creditor’s rights to the court. The debtor may then challenge the creditor’s claim by presenting evidence that contradicts the creditor’s claims. Once the court has heard both sides of the argument, a ruling is issued that determines whether or not the debt is dischargeable. Non-dischargeability actions are an important right that creditors have in Washington. Without this legal recourse, creditors would lose out on money they are legally entitled to in the event of the debtor’s bankruptcy.

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