Nondischargeable Debt

AAA

DEFINITION of 'Nondischargeable Debt'

A type of debt that cannot be eliminated through bankruptcy proceeding. Such debts include, but are not limited to, student loans, most federal, state and local taxes, money borrowed on a credit card to pay those taxes, and child support and alimony.

INVESTOPEDIA EXPLAINS 'Nondischargeable Debt'

Some additional debts may be nondischargeable, but only if the creditor objects to the discharge. These include debts arising from a martial settlement or divorce decree, debts incurred based on fraudulent acts, debts from willful and malicious acts to another person or another person's property and debts from embezzlement, larceny, or a breach of fiduciary responsibility.

RELATED TERMS
  1. Bankruptcy

    A legal proceeding involving a person or business that is unable ...
  2. Discharge In Bankruptcy

    A permanent order that releases the debtor from personal liability ...
  3. Chapter 13

    A U.S. bankruptcy proceeding in which the debtor undertakes a ...
  4. Cancellation Of Debt - COD

    When a creditor forgives a debt without requiring consideration ...
  5. Free Application For Federal Student ...

    The form that must be completed in order to qualify for any type ...
  6. Student Debt

    Money owed on a loan taken out to pay for educational expenses. ...
Related Articles
  1. Retirement

    Bankruptcy Protection For Your Accounts

  2. Credit & Loans

    Digging Out Of Personal Debt

  3. Credit & Loans

    What's the difference between a grace ...

  4. Credit & Loans

    What's the difference between a grace ...

Hot Definitions
  1. Capitulation

    When investors give up any previous gains in stock price by selling equities in an effort to get out of the market and into ...
  2. Turkey

    Slang for an investment that yields disappointing results or turns out worse than expected. Failed business deals, securities ...
  3. Conduit Issuer

    An organization, usually a government agency, that issues municipal securities to raise capital for revenue-generating projects ...
  4. Financing Entity

    The party in a financing arrangement that provides money, property, or another asset to an intermediate entity or financed ...
  5. Hyperinflation

    Extremely rapid or out of control inflation. There is no precise numerical definition to hyperinflation. Hyperinflation is ...
  6. Gross Rate Of Return

    The total rate of return on an investment before the deduction of any fees or expenses. The gross rate of return is quoted ...
Trading Center