Dischargeable Debt
Dischargeable debt is a type of debt that can be eliminated or forgiven in a bankruptcy proceeding. This type of debt is typically unsecured, meaning it is not backed by collateral. Examples of dischargeable debt include credit card debt, medical bills, personal loans, and certain types of taxes. Dischargeable debt is different from non-dischargeable debt, which cannot be eliminated in a bankruptcy proceeding. Examples of non-dischargeable debt include student loans, child support, and certain types of taxes.
History of Dischargeable Debt
The concept of dischargeable debt has been around since the early days of bankruptcy law. In the United States, the Bankruptcy Code of 1978 established the modern framework for bankruptcy proceedings. This code established the categories of dischargeable and non-dischargeable debt, and it also established the criteria for determining which debts are eligible for discharge. Since then, the Bankruptcy Code has been amended several times, but the basic framework for determining dischargeable debt has remained largely unchanged.
Comparison of Dischargeable and Non-Dischargeable Debt
| Type of Debt | Dischargeable | Non-Dischargeable |
|---|---|---|
| Credit Card Debt | Yes | No |
| Medical Bills | Yes | No |
| Personal Loans | Yes | No |
| Certain Types of Taxes | Yes | No |
| Student Loans | No | Yes |
| Child Support | No | Yes |
Summary
Dischargeable debt is a type of debt that can be eliminated or forgiven in a bankruptcy proceeding. This type of debt is typically unsecured, meaning it is not backed by collateral. Examples of dischargeable debt include credit card debt, medical bills, personal loans, and certain types of taxes. Non-dischargeable debt, on the other hand, cannot be eliminated in a bankruptcy proceeding. Examples of non-dischargeable debt include student loans, child support, and certain types of taxes. For more information about dischargeable debt, visit the websites of the U.S. Bankruptcy Court, the Internal Revenue Service, and the Federal Trade Commission.
See Also
- Bankruptcy
- Unsecured Debt
- Secured Debt
- Debt Relief
- Debt Consolidation
- Debt Settlement
- Debt Management
- Debt Negotiation
- Credit Counseling
- Debtor Education
