Dischargeability Proceeding [Bankruptcy] Law and Legal Definition

Dischargeability proceeding is a hearing to determine whether a debt is dischargeable or not or is subject to an exception to discharge recognized by the U.S. bankruptcy law. Under dischargeability proceeding, a statutory injunction is granted against commencement or continuation of an action to collect, recover or offset a debt as a personal liability of the debtor. A discharge of debts is granted to debtors but can be denied or revoked by a court based on certain misconduct of debtors, including fraudulent actions or failure of a debtor to disclose all assets during a bankruptcy case.[ 11 USCS § 524]