Prior to passage of the 2005 bankruptcy reform laws, a Chapter 13 discharge was referred to as a "super" discharge. The Chapter 13 discharge was "super" because several types of debts that were not dischargeable in Chapter 7 were dischargeable in Chapter 13. A Chapter 13 discharge was much broader in scope than a Chapter 7 discharge.
The bankruptcy reform laws drastically narrowed the scope of the Chapter 13 discharge. Several of the types of debts that were dischargeable in Chapter 13 were eliminated. After bankruptcy reform, a Chapter 13 discharge is no longer "super."
The following table presents a summary comparison of the types of debts that are dischargeable in a Chapter 7 and 13 cases, and the changes made by bankruptcy reform.
|
Type of Debt |
Is the debt dischargeable in bankruptcy? Yes or No |
|||
|
Old (Pre- Reform) Law |
Current Law |
|||
|
Ch. 7 or 11 |
Ch. 13 |
Ch. 7 or 11 |
Ch. 13 |
|
|
Child Support and Alimony Obligations |
No |
No |
No |
No |
|
Civil Fines & Penalties |
No |
Yes |
No |
Yes |
|
Criminal Fines & Restitution |
No |
No |
No |
No |
|
Divorce Decree Debts |
No |
Yes |
No |
Yes |
|
Drunk Drivers Causing Death or Injury |
No |
No |
No |
No |
|
Embezzlement, Theft or Breach of Fiduciary Duty |
No* |
Yes |
No* |
No* |
|
Fraud and False Financial Statements |
No* |
Yes |
No* |
No* |
|
Student Loans |
No |
No |
No |
No |
|
Tax Debts |
||||
|
● Less than 3 Years Old |
No |
No |
No |
No |
|
● Required Return Was Never Filed |
No |
Yes |
No |
No |
|
● Tax Fraud and Willful Evasion |
No |
Yes |
No |
No |
|
● Employment / Trust Fund Taxes |
No |
Yes |
No |
No |
|
Debts Incurred to Pay Non-Dischargeable Federal Taxes |
No |
Yes |
No |
Yes |
|
Debts Incurred to Pay Non-Dischargeable State or Local Tax |
New – Added by BAPCPA |
No |
Yes |
|
|
Unlisted Debts |
No |
No |
No |
No |
|
Waiver or Denial of Discharge in Prior Case |
No |
Yes |
No |
Yes |
|
Welfare Repayment Obligations |
No |
Yes |
No |
Yes |
|
Willful & Malicious Injury – to |
||||
|
● Persons |
No* |
Yes |
No* |
No |
|
● Property |
No* |
Yes |
No* |
Yes |
|
* These debts require the creditor to file a lawsuit in bankruptcy court to establish that the debt exists and that it is non-dischargeable. All other debts are automatically non-dischargeable. |
||||
