Nondischargeable Debt Law and Legal Definition

A debtor who successfully conducts the bankruptcy process is entitled to a discharge of all pre-petition debts. However, certain debts are declared as non dischargeable by Congress. A nondischargeable debt is a monetary obligation that cannot be eliminated by bankruptcy proceedings. Examples of non dischargeable debts are criminal fines and debts, student loans ,taxes ,fraudulent debts, dischargeable debt incurred to pay off non-dischargeable debt, alimony and child support payments,and divorce and property settlements. Certain debts that are normally dischargeable may be ruled as non-dischargeable if a debtor has committed a crime or fraud. A debtor still has to pay the creditor for the non-dischargeable debt, even after bankruptcy.

The purpose for declaring certain debts as nondischargeable is that, certain debts are so important or so serious that the debtor should never expect to escape them. By declaring certain debts as non dischargeable, debtors are cautioned while incurring such debts.