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§ 523. Exceptions
to discharge
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(1)
for a tax or a customs duty—
(A) of the kind and for the periods specified in
section
507(a)(3) or
507(a)(8) of this title, whether or not a
claim for such tax was filed or allowed;
(B) with respect to which a return, or equivalent
report or notice, if required—
(i) was not filed or given; or
(ii) was filed or given after the date on which
such return, report, or notice was last due, under applicable
law or under any extension, and after two years before the
date of the filing of the
petition; or
(C)
with respect to which the
debtor made a fraudulent return or willfully attempted
in any manner to evade or defeat such tax;
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(2)
for money, property, services, or an extension, renewal,
or refinancing of credit, to the extent obtained by—
(A)
false pretenses, a false representation, or actual fraud,
other than a statement respecting the
debtor's or an
insider's financial condition;
(B)
use of a statement in writing—
(i)
that is materially false;
(ii)
respecting the
debtor's or an
insider's financial condition;
(iii)
on which the
creditor to whom the
debtor is liable for such money, property, services,
or credit reasonably relied; and
(iv)
that the
debtor caused to be made or published with intent to
deceive; or
(C)(i) for purposes of subparagraph
(A)—
(I)
consumer debts owed to a single
creditor and aggregating more than $650
for luxury goods or services incurred by an individual
debtor on or within 90 days before the
order for relief under this title are presumed to be
nondischargeable; and
(II) cash advances aggregating more than $925
that are extensions of consumer credit under an open end
credit plan obtained by an individual
debtor on or within 70 days before the
order for relief under this title, are presumed to be
nondischargeable; and
(ii) for purposes of this subparagraph—
(I) the terms "consumer", "credit", and "open end
credit plan" have the same meanings as in section 103 of
the Truth in Lending Act;
and
(II) the term "luxury goods or services" does not
include goods or services reasonably necessary for the support
or maintenance of the
debtor or a
dependent of the
debtor.
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(3)
neither listed nor scheduled under section
521(a)(1) of this title, with the name, if known to the
debtor, of the
creditor to whom such
debt is owed, in time to permit—
(A)
if such
debt is not of a kind specified in paragraph
(2),
(4),
or (6)
of this subsection, timely filing of a proof of
claim, unless such
creditor had notice or actual knowledge of the case
in time for such timely filing; or
(B)
if such
debt is of a kind specified in paragraph
(2),
(4),
or (6)
of this subsection, timely filing of a proof of
claim and timely request for a determination of dischargeability
of such
debt under one of such paragraphs, unless such
creditor had notice or actual knowledge of the case
in time for such timely filing and request;
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(7)
to the extent such
debt is for a fine, penalty, or forfeiture payable
to and for the benefit of a
governmental unit, and is not compensation for actual
pecuniary loss, other than a tax penalty—
(A)
relating to a tax of a kind not specified in paragraph
(1)
of this subsection; or
(B)
imposed with respect to a transaction or event that
occurred before three years before the date of the filing
of the
petition;
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(8) unless excepting such
debt from discharge under this paragraph would impose
an undue hardship on the
debtor and the
debtor's
dependents, for—
(A)(i) an educational benefit overpayment or
loan made, insured or guaranteed by a
governmental unit, or made under any program funded
in whole or in part by a
governmental unit or nonprofit institution, or
(ii) an obligation to repay funds received as
an educational benefit, scholarship or stipend; or
(B) any other educational loan that is a qualified
education loan, as defined in section
221(d)(1) of the Internal Revenue Code of 1986,
incurred by a
debtor who is an individual;
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(9) for death or personal injury caused by the
debtor's operation of a motor vehicle, vessel, or
aircraft if such operation was unlawful because the
debtor was intoxicated from using alcohol, a drug,
or another substance;
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(10)
that was or could have been listed or scheduled by the
debtor in a prior case concerning the
debtor under this title or under the Bankruptcy
Act in which the
debtor waived discharge, or was denied a discharge
under section
727(a)(2),
(3),
(4),
(5),
(6), or
(7) of this title, or under section 14c(1), (2),
(3), (4), (6), or (7) of such Act;
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(11)
provided in any final judgment, unreviewable order,
or consent order or decree entered in any court of the
United States or of any
State, issued by a
Federal depository institutions regulatory agency,
or contained in any settlement agreement entered into
by the
debtor, arising from any act of fraud or defalcavtion
while acting in a fiduciary capacity committed with
respect to any depository institution or
insured credit union;
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(13)
for any payment of an order of restitution issued under
title
18, United States Code;
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(14)
incurred to pay a tax to the United States that would
be nondischargeable pursuant to paragraph
(1);
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(14A) incurred to pay a tax to a
governmental unit, other than the United States,
that would be nondischargeable under paragraph
(1);
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(14B) incurred to pay fines or penalties imposed
under Federal election law;
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(15) to a spouse, former spouse, or child of
the
debtor and not of the kind described in paragraph
(5)
that is incurred by the
debtor in the course of a divorce or separation
or in connection with a separation agreement, divorce
decree or other order of a court of record, or a determination
made in accordance with
State or territorial law by a
governmental unit;
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(16) for a fee or assessment that becomes due
and payable after the
order for relief to a membership association with
respect to the
debtor's interest in a unit that has condominium
ownership, in a share of a cooperative
corporation, or a lot in a homeowners association,
for as long as the
debtor or the trustee has a legal, equitable, or
possessory ownership interest in such unit, such
corporation, or such lot, but nothing in this paragraph
shall except from discharge the
debt of a
debtor for a membership association fee or assessment
for a period arising before entry of the
order for relief in a pending or subsequent bankruptcy
case;
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(17) for a fee imposed on a prisoner by any
court for the filing of a case, motion, complaint, or
appeal, or for other costs and expenses assessed with
respect to such filing, regardless of an assertion of
poverty by the
debtor under subsections (b) or (f)(2) of section
1915 of title
28(or a similar non-Federal law), or the
debtor's status as a prisoner, as defined in section
1915(h) of title
28(or a similar non-Federal law); or
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(18) owed to a pension, profit-sharing, stock
bonus, or other plan established under section 401,
403, 408, 408A, 414, 457, or 501(c) of the Internal
Revenue Code of 1986, under—
(A) a loan permitted under section 408(b)(1)
of the Employee Retirement Income Security Act of 1974,
or subject to section 72(p) of the Internal Revenue
Code of 1986; or
(B) a loan from a thrift savings plan permitted
under subchapter III of chapter 84 of title 5,
that satisfies the requirements of section 8433(g)
of such title;
but nothing in this paragraph may be construed to provide
that any loan made under a governmental plan under section
414(d), or a contract or account under section 403(b),
of the Internal Revenue Code of 1986 constitutes a
claim or a
debt under this title; or
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(19) that—
(A) is for—
(i) the violation of any
of the Federal securities laws (as that term is defined
in section 3(a)(47) of the Securities Exchange Act of
1934),
any of the
State securities laws, or any regulation or order
issued under such Federal or
State securities laws; or
(ii) common law fraud,
deceit, or manipulation in connection with the purchase
or sale of any security; and
(B) results, before, on, or after the date on
which the petition was filed, from—
(i) any judgment, order,
consent order, or decree entered in any Federal or
State judicial or administrative proceeding;
(ii) any settlement agreement
entered into by the
debtor; or
(iii) any court or administrative
order for any damages, fine, penalty, citation, restitutionary
payment, disgorgement payment, attorney fee, cost, or
other payment owed by the
debtor.
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For purposes of this subsection, the term "return" means
a return that satisfies the requirements of applicable
nonbankruptcy law (including applicable filing requirements).
Such term
includes a return prepared pursuant to section
6020(a) of the Internal Revenue Code of 1986, or
similar
State or local law, or a written stipulation to
a judgment or a final order entered by a nonbankruptcy
tribunal, but does not include a return made pursuant
to section
6020(b) of the Internal Revenue Code of 1986, or
a similar
State or local law.
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(b)
Notwithstanding subsection
(a)
of this section, a
debt that was excepted from discharge under subsection
(a)(1),
(a)(3),
or (a)(8)
of this section, under section 17a(1), 17a(3), or 17a(5)
of the Bankruptcy Act, under section 439A of the Higher
Education Act of 1965, or under section 733(g) of the
Public Health Service Act in a prior case concerning
the
debtor under this title, or under the Bankruptcy
Act, is dischargeable in a case under this title unless,
by the terms of subsection
(a)
of this section, such
debt is not dischargeable in the case under this
title.
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(c)(1) Except as provided in subsection
(a)(3)(B)
of this section, the
debtor shall be discharged from a
debt of a kind specified in paragraph
(2),
(4),
or (6)
of subsection
(a)
of this section, unless, on request of the
creditor to whom such
debt is owed, and
after notice and a hearing, the court determines
such
debt to be excepted from discharge under paragraph
(2),
(4)
or (6),
as the case may be, of subsection
(a)
of this section.
(2)
Paragraph
(1) shall not apply in the case of a
Federal depository institutions regulatory agency
seeking, in its capacity as conservator, receiver, or
liquidating agent for an
insured depository institution, to recover a
debt described in subsection
(a)(2),
(a)(4),
(a)(6),
or (a)(11)
owed to such institution by an
institution-affiliated party unless the receiver,
conservator, or liquidating agent was appointed in time
to reasonably comply, or for a
Federal depository institutions regulatory agency
acting in its corporate capacity as a successor to such
receiver, conservator, or liquidating agent to reasonably
comply, with subsection
(a)(3)(B)
as a
creditor of such
institution-affiliated party with respect to such
debt.
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(d)
If a
creditor requests a determination of dischargeability
of a
consumer debt under subsection
(a)(2)
of this section, and such
debt is discharged, the court shall grant judgment
in favor of the
debtor for the costs of, and a reasonable attorney's
fee for, the proceeding if the court finds that the
position of the
creditor was not substantially justified, except
that the court shall not award such costs and fees if
special circumstances would make the award unjust.
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(Pub. L. 95-598, Nov. 6, 1978, 92 Stat. 2590;
Pub. L. 96-56, § 3, Aug. 14, 1979, 93 Stat. 387; Pub.
L. 97-35, title XXIII, § 2334(b), Aug. 13, 1981,
95 Stat. 863; Pub. L. 98-353, title III, § 307, 371,
454, July 10, 1984, 98 Stat. 353, 364, 375; Pub.
L. 99-554, title II, § 257(n), 281, 283(j), Oct. 27,
1986, 100 Stat. 3115-3117; Pub. L. 101-581, §
2(a), Nov. 15, 1990, 104 Stat. 2865; Pub. L.
101-647, title XXV, § 2522(a), title XXXI, § 3102(a),
title XXXVI, § 3621, Nov. 29, 1990, 104 Stat.
4865, 4916, 4964; Pub. L. 103-322, title XXXII, § 320934,
Sept. 13, 1994, 108 Stat. 2135; Pub. L.
103-394, title II, § 221, title III, § 304(e), (h)(3),
306, 309, title V, § 501(d)(13), Oct. 22, 1994,
108 Stat. 4129, 4133-4135, 4137, 4145; Pub. L. 104-134,
title I, § 101((a)) (title VIII, § 804(b)), Apr.
26, 1996, 110 Stat. 1321, 1321-74; renumbered title
I, Pub. L. 104-140, § 1(a), May 2, 1996, 110
Stat. 1327; Pub. L. 104-193, title III, § 374(a),
Aug. 22, 1996, 110 Stat. 2255; Feb. 12, 1998,
63 Fed. Reg. 7179; Pub. L. 105-244,
title IX, § 971(a), Oct. 7, 1998, 112 Stat. 1837;
Feb. 20, 2001, 66 Fed. Reg. 10910; Pub. L. 107-204, title VIII, § 803, July 30, 2002,
116 Stat. 801; Feb. 24, 2004, 69 Fed. Reg.
8482; Pub. L.
109-8, Title II, Subtitle B, §§
215,
220, Subtitle C, §
224(c), Title III, §§
301,
310,
314(a), Title IV, Subtitle A, §
412, Title VII, §
714, Title XII, §§
1209,
1235, Title XIV, §
1404(a), Title XV, §
1502(a)(2), April 20, 2005, 119 Stat. 54,
59, 64, 75, 84, 88, 107, 128, 194, 204, 215, 216;
Feb. 14, 2007, 72 Fed. Reg. 7082;
Feb. 25, 2010, 75 Fed. Reg. 8747; Pub. L.
111-327, § 2(a)(18), Dec. 22,
2010, 124 Stat. 3559; Feb. 21,
2013, 78 Fed. Reg. 12089.)
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©2005-2013 - Weber Law
Publishing - All Rights Reserved
Page Last Updated:
April 28, 2013
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