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.

BREAKING DOWN '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. Debt

    An amount of money borrowed by one party from another, often ...
  2. Student Debt

    Money owed on a loan taken out to pay for educational expenses. ...
  3. Cost of Debt

    The effective rate that a company pays on its current debt. This ...
  4. Secured Debt

    Debt backed or secured by collateral to reduce the risk associated ...
  5. Debt Service

    The cash that is required for a particular time period to cover ...
  6. Net Debt

    A metric that shows a company's overall debt situation by netting ...
Related Articles
  1. Retirement

    Why Retirees Are Carrying More Debt Than Ever

    As people reach retirement they are carrying more debt than ever before. Why and what to watch for.
  2. Personal Finance

    How to Invest When You're Deep in Debt

    Debt is one of the biggest obstacles that prevents people from investing - but it shouldn't be.
  3. Personal Finance

    4 Debt-Busting AlternativesTo Balance Transfers

    Credit card balance transfers can help pay off debts – but they can cost you. Here are some other approaches worth checking out.
  4. Financial Advisor

    The 4 Best Debt Reduction Services

    It can be tricky to find the best debt reduction services for your financial situation. These top 4 debt consolidation firms help make the process easier.
  5. Investing

    Will Corporate Debt Drag Your Stock Down?

    Borrowed funds can mean a leg up for companies or the boot for investors. Find out how to tell the difference.
  6. Personal Finance

    The Generational Debt Gap

    Are future generations in trouble when it comes to how much debt they have? We compare debt between other age groups to find out.
  7. Retirement

    Student Loan Debt and Your Retirement Savings

    The burden of student loan debt can hinder the ability to save long term for retirement
  8. Taxes

    Student Debt: Is Bankruptcy The Answer?

    Student loans can be a huge financial burden, but bankruptcy won't necessarily save you from paying.
  9. Personal Finance

    Best 5 Money-Saving Tips to Get out of Debt

    Understand the different types of debt and the reasons why people get into debt. Learn about five tips to follow to get out of debt.
RELATED FAQS
  1. Can personal loans be included in bankruptcy?

    Read about debts that are dischargeable when filing for bankruptcy. Learn about how personal loans are treated when filing ... Read Answer >>
  2. Will my credit score suffer from debt consolidation or refinancing?

    Learn how different debt relief options – consolidation, settlement, credit counseling and bankruptcy – could affect your ... Read Answer >>
  3. What's the difference between debt consolidation and debt settlement?

    Learn the differences between negotiating a debt settlement with your existing creditors and applying for a new consolidation ... Read Answer >>
Trading Center