What is a nondischargeable debt?

A nondischargeable debt is a debt that cannot be eliminated through a Chapter 7 bankruptcy. In North Dakota, debts that typically are not dischargeable include certain taxes, child support and alimony payments, student loans, punitive damages from a judgment, and debts associated with personal injury caused by the debtor to an innocent party. Taxes owed to the Internal Revenue Service or the State of North Dakota are generally not dischargeable in a Chapter 7 bankruptcy. This includes federal income taxes for which a return was due within the previous three years, taxes assessed within the last 240 days, and any taxes for which the debtor has attempted to avoid payment. Child support and alimony payments are also nondischargeable debts in Chapter 7 bankruptcy. This means the debtor must continue making payments to the court-appointed obligee, even after the bankruptcy case has been discharged. Student loans are also not typically dischargeable in Chapter 7 bankruptcy. Private student loans, as well as those administered by the U.S. Department of Education, are not dischargeable except in rare circumstances. Finally, punitive damages, or damages awarded to the victim as a form of punishment, are not dischargeable in Chapter 7 bankruptcy. This means any punitive damages awarded to the victim of the debtor’s negligence or any other form of wrongdoing will not be eliminated in the bankruptcy process. The debtor must still pay these damages to the victim, even after the bankruptcy has been discharged.

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