Kentucky Bankruptcy Law

Counsel with Care

Nondischargeable Debts in Chapter 13 Cases

This is such beneficial information for creditors, but also for debtors who suspect such a claim would be filed against them.

Chapter 13 Trustee, EDKY: Trustee's Blog

We all know that section 523 contains exceptions to discharge, but some of those nondischargeable debts, including 523(a)(6) debts (for willful and malicious injury) CAN BE discharged in a chapter 13 case when the debtor completes plan payments.   If you represent creditors, you need to know how and when to seek nondischargeability under 523(a)(6) in chapter 13 cases.

Look at the first sentence in 523(a):  “A discharge under section 727, 1141, 1228(a), 1228(b), or 1328(b) of this title does not discharge an individual debtor from” the debts listed in 523(a).

There are two discharge options in a chapter 13 case:

  • the debtor can get a discharge upon completion of plan payments under 1328(a); or
  • if the debtor has not completed plan payments, s/he can still get a so-called hardship discharge under 1328(b) if certain conditions are met.

Read the first sentence of 523(a) again – those 523(a) debts are nondischargeable…

View original post 510 more words

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October 21, 2016 - Posted by | Uncategorized

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