What is a nondischargeable debt?

A nondischargeable debt is a debt that cannot be eliminated through the Chapter 7 bankruptcy process. In Michigan, certain types of debt are automatically determined to be nondischargeable. This includes child support and alimony payments, most taxes, student loans, court-ordered restitution payments, most debts related to fraud or embezzlement, and certain types of property settlements. There are also certain types of debt that are only considered nondischargeable if the creditor files a written objection to the debtor’s bankruptcy petition. These include spousal support and alimony payments, certain income tax debts, debts incurred through fraud or misrepresentation, and debts incurred to pay for luxury items within 90 days of filing for bankruptcy. In general, the purpose of Chapter 7 bankruptcy is to help individuals eliminate debt, but not all debt is eligible for discharge. Knowing the difference between a dischargeable and nondischargeable debt can help individuals understand what types of debt they may be able to discharge in a Chapter 7 bankruptcy and which debts may still need to be paid.

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What is a nondischargeable debt?

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