What is a non-dischargeable debt?

Non-dischargeable debt is a term used in debtor and creditor law to refer to debts that cannot be discharged or eliminated through filing bankruptcy. In California, non-dischargeable debts include certain types of taxes, student loans, spousal or child support obligations, fines and penalties, and debts arising from fraud. Tax debts are typically non-dischargeable in bankruptcy court. This includes any federal income taxes, state income taxes, payroll taxes, tax penalties, and other tax debts owed to any governmental organization. Depending on the calculation of the debt, some taxes may be dischargeable in bankruptcy. Student loans are also generally considered non-dischargeable debts in California. Only in rare cases can a debtor show that paying the student loan would cause an "undue hardship." This standard is difficult to meet and thus it is rare for student loans to be dischargeable in bankruptcy court. Spousal and child support obligations are also considered non-dischargeable in bankruptcy court. This is because the court recognizes that these obligations are necessary for a person’s health and well-being. In addition, certain fines and penalties are non-dischargeable. This includes any fines or penalties arising from criminal convictions or civil judgments. Lastly, debts arising from fraud or any willful or malicious injury are also considered non-dischargeable. This includes debts that stem from fraudulently obtaining credit or services or any other debts arising from fraudulent acts. In sum, non-dischargeable debts are debts that cannot be eliminated in bankruptcy court. This includes taxes, student loans, spousal and child support obligations, fines and penalties, and debts arising from fraud.

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