What is a nondischargeable debt?

A nondischargeable debt is a type of debt that cannot be eliminated in Chapter 7 Bankruptcy Law in California. This type of debt remains with the debtor after the bankruptcy proceedings are completed and must be paid off in full. Examples of nondischargeable debt include alimony and child support, student loan debt, certain taxes, debt incurred from injury or death caused by driving under the influence, and debt incurred from fraud. In California, creditors may challenge the debtor’s eligibility to have a certain debt discharged in a Chapter 7 bankruptcy. If the court finds that the debt is nondischargeable, then it will remain with the debtor after the bankruptcy proceedings are completed and must be paid off in full. It is important to note that even if the debt is nondischargeable, it may still be possible to negotiate a settlement with the creditor or to restructure the debt so that it is more manageable for the debtor.

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What is a nondischargeable debt?

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