Legal Definitions - dischargeability proceeding

DISCHARGEABILITY PROCEEDING

A dischargeability proceeding is a legal hearing that determines whether a debt can be eliminated through bankruptcy or if it is exempt from discharge. This process is governed by the United States Bankruptcy Code.

Example 1: John files for bankruptcy and includes his credit card debt in his petition. The credit card company objects, claiming that John made fraudulent charges. A dischargeability proceeding is held to determine whether the debt can be discharged or if it falls under an exception to discharge.

Example 2: Mary files for bankruptcy and includes her student loan debt in her petition. A dischargeability proceeding is held to determine whether the debt can be discharged or if it is exempt from discharge due to the "undue hardship" provision of the Bankruptcy Code.

A dischargeability proceeding is a legal process that determines whether a debt can be eliminated through bankruptcy or if it is exempt from discharge. This process is important because it can impact the debtor's ability to obtain a fresh start after bankruptcy. The examples illustrate how a dischargeability proceeding can be used to determine whether a debt can be discharged or if it falls under an exception to discharge.