Nondischargeable debt is a debt that is not wiped out by a Bankruptcy discharge, so the debtor may still have to pay it after the case ends. Whether a debt is nondischargeable depends on the Bankruptcy Code, the type of case, and sometimes whether a creditor asks the court for a ruling.

Bankruptcy law does not discharge every obligation. Some debts survive automatically, while others require litigation to determine whether they are excepted from discharge.

Nondischargeable Debt Explained

U.S. Courts guidance explains that not all debts are discharged and lists common examples such as certain taxes, domestic support obligations, most student loans, some fines, and debts involving fraud or willful injury. Cornell Wex likewise describes these debts as obligations that remain enforceable even after the discharge order is entered.

The Term Nondischargeable Debt in Different Legal Contexts

In Chapter 7, 11, and 12 cases, there are broad categories of debts excepted from discharge by statute. In Chapter 13, a somewhat different and often narrower set of exceptions applies.

Some nondischargeability issues arise automatically from the nature of the debt, while others depend on a creditor bringing the issue before the bankruptcy court.

Common Misconceptions About the Meaning of Nondischargeable Debt

A common misconception is that bankruptcy automatically erases every debt. It does not. The discharge only covers debts that the law allows to be discharged.

Another misconception is that nondischargeable debt always requires a separate court fight. Some categories are excepted by statute without additional litigation, while others require a creditor to seek a determination from the court.