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. | ||||
