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Securities Fraud or Securities Law Violations

1. Chapter 7 or 11 Cases. A debtor that file for bankruptcy under Chapter 7 or 11 can not discharge a judgment, fine, penalty, restitution obligation or settlement agreement relating to any of the following:

► violations of any of the federal or state securities laws, regulations or orders; and

► fraud, deceit, or manipulation in connection with the purchase or sale of any security.

2. Chapter 13 Cases. Debts relating to securities fraud and securities law violations can be discharged without making full payment in a Chapter 13 case. The only exception are restitution obligations and criminal fines included in a debtor’s sentence upon conviction of a crime relating to the violation of a federal or state securities law.

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