When a debtor files for bankruptcy, creditors often fear their
claims will be wiped away. However, under Section 523 of the
Bankruptcy Code, certain debts are categorized as
non-dischargeable, meaning the debtor cannot eliminate these
obligations through bankruptcy. For creditors, understanding these
exceptions and acting within the appropriate timeframe is critical
to preserving your rights and maximizing potential recovery.
Key Non-Dischargeable Debts
Section 523(a) of the Bankruptcy Code outlines specific debts
that are not discharged in a bankruptcy proceeding. These
provisions aim to protect creditors who are owed debts resulting
from egregious or intentional misconduct.
The most common categories of non-dischargeable debts are:
