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The code provides that many specifically designated debts are not
dischargeable. In general, nondischargeable debts relate to taxes owed to
governmental units, amounts owed for alimony and child support, and debts owed to
others related to commission of a crime. Other debts are included as well, and the
common thread connecting many nondischargeable debts is the obligation was
incurred without approval from the creditor. Also, student loans and a few
other debts are not dischargeable based upon public policy. 11 U.S.C. 523.
Ohio Bankruptcy Law - In Practice
Nondischargeable debts must be repaid. There are 18 categories of debt excepted
from court discharge granted in chapters 7, 11, and 12. A more limited list of
exceptions applies to cases under Chapter 13, allowing for more generous discharge
potential for debtors. Discharge disputes are resolved by the court. Frequently, obligations created
by consensual divorce settlements are disputed. The nature of the obligation,
settlement terms and state law all impact dischargeability.
The operation of law pertaining to federal debt relief is complex. State law statutes, federal rules, and
decisions rendered by courts combine to establish a local standard for Ohio Bankruptcy Courts. Anyone who
considers filing should, at a minimum, balance short term requirements to long term benefits. Each debtor is
different. The most valuable benefits are a personal choice, with availability dependent upon the application of
law to unique circumstances.
Back to Ohio Bankruptcy Lawyer FAQ contents.
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