What does Non-Dischargeable mean in Bankruptcy?

If you are thinking of filing for bankruptcy, the term "non-dischargeable" is one you are going to hear a lot, but hopefully not with respect to your case. A non-dischargeable debt is the fancy legal term to mean a debt that you can't completely get rid of by filing for bankruptcy. In a Chapter 7, you will be stuck paying it back because of the kind of debt that it is. In a Chapter 13, you can still be helped by including it on a payment plan which give you breathing room. Typical debts that are non-dischargeable are:

  • Student Loans
  • Most Tax Debt
  • Debts owed to a goverment (US, State, cities as in parking tickets)
  • Child Support
  • Cash advances or credit card debt spent on luxury goods; both with time limits

If you have a debt that is non-dischargeable, there might still be good reasons to file for bankruptcy - like all of your other debt such as credit cards or medical bills.  Even if you have debt that can't be discharged in bankruptcy, it still has to be mentioned in your paperwork. For advice on how to deal with non-dischargeable or other typed of debt, give us a call to set up your initial consultation which is free for bankruptcy.

Carol O'Connor Cadiz
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Attorney & Owner at O'Connor Cadiz Law: Injury & Accidents, Disability Insurance.